BTr raises P221 billion from RTB offering

MANILA, Philippines — The Bureau of the Treasury (BTr) has initially sold P221.218 billion worth of three-year Retail Treasury bonds (RTBs) on strong demand from investors.

During its-price setting auction yesterday, the RTBs attracted strong demand from institutional investors with tenders reaching P284.183 billion.

This prompted the BTr to upsize the volume of the auction facility, accepting P221.218 billion or more than seven times larger than the original offer size of P30 billion.

The debt papers were priced at a coupon rate of 2.375 percent, 20.6 basis points higher than the 2.169 percent fetched by securities of the same tenor in December last year. It was, likewise, higher compared to the secondary market rate for three-year securities, which settled at 2.0984 percent the previous day.

This is the 25th tranche of RTBs to be issued by the government and the first within the year. The RTBs will be offered to the general investing public in minimum denominations of P5,000 until March 4.

In a text message to reporters, National Treasurer Rosalia de Leon said there was strong appetite for the three-year retail securities given the robust liquidity condition of the financial system, and the market’s “flight to safe haven” approach.

De Leon expressed confidence that the coupon rate would encourage more investors to participate in the fundraising activity, or swap their old debt papers for the new RTBs.

“Better yield than time deposit, safe and low-risk. The biggest reward is contributing to recovery and nation-building,” she said.

Sought for comment, a bond trader said the RTB’s coupon rate was within the higher end of the market’s expectation. The trader said demand was driven by ample market liquidity, as well as a strong peso.

The trader said there was also a possibility that the BTr may breach its previous RTB record of P516.3 billion in August last year given the strong demand from investors.

Through the RTB offering, small investors may be able to invest in government securities at minimum denominations of P5,000.

Aside from fresh investments, participants of the RTB tranche will also get the opportunity to swap their old bonds maturing this year for the new debt papers.

Eligible bonds for the debt swap offer include fixed-rate treasury note (FXTN) 07-57 maturing on March 20, FXTN 10-53 maturing on April 28, RTB 03-09 maturing on June 13, RTB 10-03 maturing on Oct. 20, and FXTN 10-55 maturing on Nov. 24.

The RTBs will be available through 21 selling agents listed on the BTr’s website.

Moreover, investors may also access the RTBs through online facilities, including the RTB Online Ordering Facility, Bonds.PH mobile application and the Overseas Filipino Bank’s mobile banking app.