DOF: Treasury raises record P516B from ‘Progreso’ bonds issuance

The Bureau of the Treasury (BTr) has raised a record P516.3 billion from the issuance of Retail Treasury Bonds Tranche 24 (RTB-24) or “Progreso Bonds,” the Department of Finance (DOF) said Friday.

The total issue size of the “Progreso” bonds consisted of P488.5 billion in new subscriptions and P27.8 billion from the bond exchange program.

The bonds carry an interest rate of 2.625% and maturity of five years.

Interested individual investors availed of the bonds for a minimum investment of P5,000. The public offer period began on July 16 and closed on August 7.

The BTr conducted targeted online roadshows for audiences nationwide, including cooperatives and employees’ associations, the DOF said.

In partnership with the Department of Foreign Affairs (DFA), the BTr engaged with overseas Filipinos (OFs) in Japan, USA, Singapore, and the Caribbean to offer this investment option.

"The overwhelming market response to our offer of PROGRESO bonds underlines the strong investor appreciation of the country's exceptional credit profile under the Duterte presidency along with broad support for government efforts to save lives and steer the economy to recovery in the face of the global health emergency," Finance Secretary Carlos Dominguez III said.

Dominguez said "the more small investors save their money by putting them in relatively higher-yielding RTBs, the more the country moves closer to President Duterte's paramount goal of financial inclusion for all Filipinos."

“The Progreso bonds present a splendid opportunity for Filipinos to contribute to nation building, especially during this extremely challenging season of the coronavirus pandemic,” he said.

“Market liquidity, great timing and our attractive interest rate were the drivers of success for this year’s offering of RTBs. As our economy expands and more people become financially capable to save, it is rewarding for the BTr to see a wider set of the public put their trust in our almost annual fund-raising exercise,” National Treasurer Rosalia De Leon said.

The RTB issuance forms part of the government’s proactive financing strategy, and proceeds will go to the government’s general fund, for its various projects including the country’s emergency, recovery, and resiliency programs.

The Development Bank of the Philippines and the Land Bank of the Philippines were the Joint Lead Issue Managers for the RTB 24 offering, with BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation, RCBC Capital Corporation, SB Capital Investment Corporation, and Union Bank of the Philippines as Joint Issue Managers.—AOL, GMA News