Treasury to sell P30B of 3-yr. retail bonds

The Bureau of the Treasury (BTr) is selling P30 billion worth of three-year, fixed rate retail treasury bonds (RTBs), starting next week to promote investing among Filipinos.

Due on April 11, 2020, the RTBs will be auctioned off to the general investing public from March 28 and April 6, 2017, the BTr said in a notice of offering. The issuance is on April 11, 2017.

Minimum denominations of P 5,000 will be sold during the offer period.

"The final interest rate will be determined through a Dutch auction to be participated in by GSEDs (government securities eligible dealers)," the bureau said.

The interest rate shall be "based on current market levels of comparable securities rounded down to the nearest one-eight of 1 percent and shall be stated in three decimal places."

The yield rate will be paid quarterly, calculated on 30/360-day basis.

“We want more Filipinos to get into the habit of investing, and become more financially aware of how their money could work harder for them,” National Treasurer Rosalia de Leon said in a statement.

De Leon noted that RTBs offer an opportunity for the investing public to access affordable and higher-yielding instruments compared to regular time deposits.

The BTr said it will be holding roadshows in key cities throughout the country, including Metro Manila, Baguio, Batangas, Cagayan de Oro, Cebu, Davao, Iloilo, Pampanga and Legazpi.

First Metro Investment Corp. and Land Bank of the Philippines were tapped as joint lead issue managers.

The BTr hired BDO Capital & Investment Corp., BPI Capital Corp., Development Bank of the Philippines, China Bank Capital Corp. and SB Capital Corp. as joint issue managers.

"The RTBs shall be listed on the Philippine Dealing and Exchange Corp.," the bureau said. — VDS, GMA News