THE Philippine government has raised USD1.26 billion from the issuance of the second tranche of the Retail Dollar Bond (RDB 2).
Launched on Sept. 27 and offered until Oct. 6, the RDB 2 has a tenor of 5.5 years and a gross interest rate of 5.750 percent per annum, payable every quarter until its maturity in 2029.
It lowered the minimum investment amount from USD300 to just USD200, and in multiples of USD100 thereafter.
“It’s already closed. So we upsized it from the [initial target of] USD1 billion to USD1.26 billion,” Finance Secretary Benjamin Diokno said in his weekly briefing on Friday, Oct. 6.
He added: “There’s a little bit of premium because we really want the overseas Filipino workers to invest.”
Diokno earlier said the RDB 2 is a potent tool for promoting financial inclusion and was designed to attract more Filipinos to invest.
Bureau of Treasury (BTr) Deputy Treasurer Erwin Sta. Ana said that during the launch, the government already raised USD611 million.
“I think this is a very good turnout considering the current market conditions. And the fact that we were able to upsize from the initial target of USD1 billion is actually a very good signal,” Sta. Ana said.
Prior to the RDB 2, the Philippines successfully launched its maiden Retail Onshore Dollar Bond and raised USD1.6 billion, way above the initial target of USD400 million. (PNA)/PN
