Govt resurrects RTBs, to issue P8B in 3, 5 yr papers

The Philippine government on Friday has resurrected the issuance of retail treasury bonds (RTBs) in order to provide investors with other forms of investment instruments. The Bureau of the Treasury said the government would auction three- and five-year RTBs worth at least P8 billion on July 23. The three-year RTBs would be due 2010 while the five-year debt papers would mature by 2012. “To provide an investment opportunity for RTB investors, the Republic of the Philippines through the BTr will auction on July 23 three- and five-year RTBs in a minimum aggregate nominal principal amount of P8B," Finance Undersecretary and acting National Treasurer Roberto Tan said. Tan said the RTBs would replace the P5 billion worth of five-year treasury bonds to be auctioned on July 24. The government tried to sell P20 billion worth of RTBs last December 6 but less than half were sold after both institutional and small local investors snubbed the government securities due to disappointing returns and uncertainty in the market. Only P8.3 billion worth of five-year RTBs were sold at that time, with a price of 5.875 percent. - GMANews.TV