DOF, Treasury raising P30B from ‘Progreso’ bonds issuance

The Department of Finance (DOF) and the Bureau of the Treasury(BTr) on Thursday launched the Retail Treasury Bonds Tranche 24 (RTB-24) or “Progreso Bonds” to raise P30 billion, which will be used to boost the state’s coffers for socioeconomic development initiatives. 

The Progreso Bonds was launched by the DOF and BTr through a virtual livestream on its social media pages.

Interested individual investors can avail of the bonds for a minimum investment of P5,000. The bonds carry an interest rate of 2.625% and maturity of five years.

The RTB-24 will be offered to the investing public until August 7 with state-run lenders Land Bank of the Philippines and Development Bank of the Philippines as the joint lead issue managers.

They will be joined by BDO Capital and Investment Corporation, BPI Capital Corporation, China Bank Capital, First Metro Investment Corporation, PNB Capital Corporation, RCBC Capital Corporation, SB Capital Corporation, and Union Bank of the Philippines as joint issue managers.

The proceeds to be generated from the bonds issuance will be utilized by the national government to fund health initiatives, especially priority measures to respond to and recover from the COVID-19 crisis, and extend support to overseas Filipino workers (OFWs) and small and medium enterprises (SMEs).

Interested investors may purchase RTB-24 through the branches of Landbank.

They can also purchase the bonds through the RTB Online Ordering Facility at the BTr’s website and through the BONDS.PH mobile application.

The Treasury will also be allowing holders of previously issued bonds, namely, RTB 10-01, FXTN 05-73, RTB 10-02 and FXTN 07-57 to exchange and reinvest their bond holdings for the RTB-24.

It will be the second time that the BTr will issue retail treasury bonds this year, after the issuance of the RTB-23 with exchange offer last February.

Retail treasury bonds are generally considered low-risk investments which allow investors to earn a fixed interest quarterly during the term of the bond based on prevailing market rates.—LDF, GMA News