Govt to sell RTBs through 15 local banks

Fifteen local banks have been tapped by the government as dealers and selling agents of three-year and fiver-year retail treasury bonds to be sold until July 31. The bonds are expected to raise at least P40 billion to be used to plug the country's ballooning budget deficit. In a memorandum released on Tuesday, Finance Undersecretary and acting National Treasurer Roberto Tan said the banks are: Metropolitan Bank & Trust Co., BPI Capital, First Metro Investment Corp., Philippine National Bank, BDO Universal bank, Land Bank of the Philippines, Development Bank of the Philippines, BDO Capital Corp., Citibank N.A., China Bank, Rizal Commercial Banking Corp., Allied Bank, Multinational Investment Bancorp., Deutsche Bank, and ING. The dealers and security agents are required to sell at least 50 percent of their subscription for RTBs to retail investors. The other half could be sold to institutional clients. Tan said the banks are also prohibited from selling the RTBs to government-owned and controlled corporations including Social Security System, Government Service Insurance System, Philippine Health Insurance Corp., and Philippine Deposit Insurance Corp. in compliance with DOF Order No. 141-95. Last Monday, the government successfully sold P18.77 billion worth of three- and five-year RTBs or two and a half times the minimum offer size of P8 billion. The three-year RTBs fetched 6.875 percent as the government sold P9.238 billion or more than two times the offer size of P4 billion while the five-year RTBs due 2012 averaged 7.125 percent with the committee selling P9.488 billion of the minimum offer size of P4 billion. The issuance of RTBs is part of the government’s savings mobilization program designed to make government securities available to retail investors at the same time create savings consciousness among Filipinos. - GMANews.TV