Govt to make P5,000-retail treasury bonds more accessible to small investors

More small investors will be able to buy P5,000-retail treasury bonds from the government after the rules on the bonds' sale are revised, the country's National Treasurer said Wednesday.

 

“We want more individuals to benefit from the investment opportunity,” National Treasurer Rosalia de Leon said on the sidelines of a finance forum.

 

The head of the Bureau of Treasury said most of the RTBs auctioned in the past went to institutional investors although the debt instruments were designed to encourage small investors to participate in the debt market.

 

Current guidelines require government securities eligible dealers to sell at least 50 percent of allocated RTBs to retail investors.

 

The guidelines also state that if dealers are unable to comply with this requirement, the government “shall only pay selling commission for the actual amount sold to retail investors and shall not pay any selling commission for the balance of the total sales.”

 

At the next auction scheduled in August, the Bureau of Treasury said it will offer P30 billion worth of RTBs.
 

Proceeds from the RTBs auction will help finance government expenditures.  — ELR, GMA News