Business

LANDBANK retail treasury bond sales reach P124.39B

Tuesday, March 30, 2021

STATE-run Land Bank of the Philippines (LANDBANK) generated a total of P124.39 billion in sales for the recently concluded Retail Treasury Bonds Tranche 25 (RTB-25) offering. This accounts for 27 percent of the total P463.32 billion raised by the Bureau of the Treasury (BTr).

LANDBANK sales were composed of P78.82 billion in new money and P45.57 billion through the switch offer, where holders of previously issued bonds exchanged their holdings for RTB-25.

A total of P78.80 billion from the new sales were facilitated via over-the-counter placements at LANDBANK branches while P20.17 million was transacted through the Bank’s online channels.

LANDBANK’s Link.BizPortal via the BTr’s Online Ordering Facility processed P11.89 million of the P20.17 million online sales. The remaining P8.28 million was transacted using the bond purchase feature in the mobile banking application of the Overseas Filipino Bank, the digital-only branchless bank subsidiary of LANDBANK.

“Despite being a universal bank, LANDBANK is also a retail bank that serves the diverse needs of retail investors for affordable and low-risk investment instruments. We will continue to support the National Government’s financing strategy by making government securities more accessible, including to Filipinos abroad,” LANDBANK president and chief executive officer Cecilia Borromeo said.

The offer period for RTB-25 began on Feb. 9, 2021 and closed as scheduled on March 4. The three-year issuance carried a coupon rate of 2.375 percent per annum.

The total P463.32 billion raised from the bond offer is more than 15 times oversubscribed from the initial issue size of P30 billion. Proceeds from the issuance will partially fund the government’s national budget for 2021 to support programs aimed at strengthening the Philippine healthcare system and help accelerate economic recovery against the ongoing coronavirus disease 2019 pandemic.

LANDBANK is the Joint Lead Issue Manager for the RTB-25 offering.

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