MANILA – The Bureau of the Treasury (BTr) raised $866.2 million (about P43.18 billion) in its first time offering retail dollar bonds.
The agency awarded $551.8 million (around P27.5 billion) in five-year retail onshore dollar bonds (RDB) and $314.4 million (P15.67 million) in 10-year bonds during the auction. The five-year bonds fetched a coupon rate of 1.375 percent, while the 10-year RDBs had an annual interest rate of 2.25 percent.
The bonds will be offered until Oct. 1, subject to extension or early termination at its discretion, the BTr said.
“The RDB offer is part of the Republic’s goal of further advancing financial inclusion for all Filipinos by providing investors a tool to diversify their investment portfolio aside from the usual Peso Retail Treasury Bonds,” it added.
With this, authorities waived the minimum initial deposit and average maintaining balance requirements for the opening of dollar-denominated deposit accounts used by RDB investors as settlement accounts.
Investors may place funds through straight investment via dollar accounts or Peso Clear through select online platforms.
Meanwhile, Finance secretary Carlos Dominguez acknowledged how retail offerings help usher in economic recovery by boosting the government’s fund-raising efforts amid the coronavirus disease 2019 pandemic.
“This helps open up the financial system to small investors and encourages more efficient intermediation. Overall, this aids in restoring the vigor of the Philippine economy at the soonest possible time,” according to the Cabinet official.(CNN)
