PHL likely to issue retail bonds in February – Treasury Bureau

The Philippines is looking at the possibility of issuing 10-year or 15-year retail treasury bonds as early as February.   Government already asked banks to submit their proposals for the bond issues, National Treasurer Roberto Tan told reporters Tuesday.   “Regarding RTBs… we will do something soon,” Tan said, adding that it is possible the issue will happen as early as February.   But there is still no mandate for the banks that will be hired to join the bond float, Tan noted.   What government is now doing is sounding out the market to see which tenors are preferred, according to the national treasurer. “We will do market sounding to determine the appetite of market investors,” he said.   The float may be of 10-year or 15-year RTBs, but the final structure would depend on what investors prefer, Tan explained.   Part of the proceeds of the bond sale will be used to redeem about P88 billion worth maturing RTBs next month.   The Bangko Sentral ng Pilipinas (BSP) has given the national government the green light to float P500 billion worth of bonds in the domestic market in view of low interest rates and strong liquidity in the financial system.   Government will likely issue two RTB tranches this year to meet the retail investors’ demand, Tan said.   In October last year, the government sold P110 billion worth of 10-year and 15-year RTBs, and P104 billion last March.   Retail bonds are part of government’s savings mobilization program to make government securities available to retail investors.   RTBs are issued in minimum denominations of P5,000. — VS, GMA News