^

Business

Government plans to issue 1-year lottery bonds

Mary Grace Padin - The Philippine Star
Government plans to issue 1-year lottery bonds
In an interview with reporters, National Treasurer Rosalia De Leon said the government is now finalizing the mechanics for a planned prize or lottery bond issuance, which will run from November to December.
File

MANILA, Philippines — The Bureau of the Treasury (BTr) plans to offer starting next month so-called prize bonds which will give small and individual investors an opportunity to win as much as P1 million in cash winnings for as low as P500 in investments.

In an interview with reporters, National Treasurer Rosalia De Leon said the government is now finalizing the mechanics for a planned prize or lottery bond issuance, which will run from November to December.

She said the bonds would have a one-year tenor, but no ceiling has been set yet in terms of the volume.

“We’re targeting middle of November for the launch, and continuing on until December,” De Leon said. “As long as it’s during the Christmas season.”

Under the planned prize bond offering, De Leon said the Treasury will sell the securities at multiples of P500. She said each investment would carry quarterly coupon payments, as well as a chance to win cash prizes during quarterly draws.

“The coupon would still be market based, if the market (rate) for one year (bonds) is about 3.5 percent, we would set aside a portion of the coupon payments and that would be used for the jackpot prizes,” De Leon said.

“Right now, we’re looking at P1 million, P100,000 and P20,000 (for the raffle prizes). We don’t know yet how many will win for each tranche,” the Treasurer added.

She said the offering will be limited to individual investors, associations and cooperatives.

Moreover, De Leon said investors of prize bonds – unlike in regular raffle games – can still redeem their principal payments when the bonds mature after one year.

“It’s principal-protected so meaning to say, at the end of one year, you can redeem the P500. So you’re not throwing away any good money at all,” she said.

According to De Leon, this is not the first time the government has offered prize bonds.

“We had the premyo savings bond. Before, everything went to the raffle prizes. This time, (investors) will continue to get the coupon and then part of the coupon payments, that will be set aside for the winnings,” she said.

De Leon said the BTr would tap the Land Bank of the Philippines and the Development Bank of the Philippines for the prize bond offering. She said these two banks would also select other banks as selling agents.

Landbank and DBP will also open their online facility for the fund raising activity, she said.

As part of BTr’s marketing strategy, De Leon said the agency would conduct provincial roadshows like what it usually does for its retail treasury bond offerings.

vuukle comment

BUREAU OF THE TREASURY

ROSALIA DE LEON

Philstar
x
  • Latest
  • Trending
Latest
Latest
abtest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with