Landbank raises P88 billion for 27th retail T-bonds

MANILA, Philippines — State-run Land Bank of the Philippines has raised nearly P88 billion for the 27th tranche of retail Treasury bonds (RTBs) that the government uses to cover its financing gap in March.

Landbank yesterday announced that it contributed more than 19 percent or P87.8 billion in the P457.8-billion RTB issuance.

Landbank president and CEO Cecilia Borromeo said the amount was generated through the bank’s efforts in selling the securities to small-scale investors over the counter and online.

“Landbank’s active participation in the RTB-27 offering is in line with our continued support for our national government in ramping up socioeconomic development initiatives. We are one with the whole nation in rising toward the new economy,” Borromeo said.

Landbank processed over P66 million through its mobile banking app and also facilitated P19 million via its digital channel linked with the Bureau of the Treasury. At least P13 million was coursed online to Landbank subsidiary Overseas Filipino Bank.

Borromeo said the state-owned bank pitched the RTBs to as many investors as it can, knowing that proceeds will fund recovery measures and put up infrastructure projects.

Further, Borromeo said the government will use the borrowings to pay a portion of the debt pile that has bloated to a record P12.03 trillion as of January.

The Treasury in February offered the RTBs to small-scale investors here and abroad, attaching a coupon of 4.875 percent and setting a maturity of five years for the debt papers.

Unlike the Treasury bonds auctioned every week, RTBs can be bought for as low as P5,000 per bid. Interest payments will be made every quarter during the five-year term of the securities.

The Treasury conducted the rate setting for the RTBs on Feb. 15, a week prior to Russia’s attack on Ukraine. Afterward, borrowing rates here and abroad began to go up so much so that four consecutive auctions at the start of March ended in failed biddings.

National Treasurer Rosalia de Leon said the government will maximize proceeds from the RTBs to fill its financing gap for the meantime that borrowing costs are breaching market pricing.

“By funding our activities in the domestic space, we are shielding our debt portfolio from volatility in the global financial markets, all the while taking advantage of the commitment of the Bangko Sentral ng Pilipinas for supporting the country’s economic recovery,” De Leon said.