Treasury concludes issuance of P150B worth of 10-year RTBs-A A +A
Tuesday, August 20, 2013
THE Bureau of the Treasury successfully issued last Aug. 15 P150 billion worth of 10-year retail Treasury bonds (RTB). The RTBs, which are set to mature in August 2023 and carry a coupon rate of 3.25 percent per annum, were simultaneously listed on the same date at the Philippine Dealing Exchange Corporation (PDEx), marking the start of secondary trading for the bonds across all segments of the market, including retail and individual investors.
The Treasury auctioned the RTBs last July 30, accepting an aggregate amount of P100 billion from submitted total tenders amounting to P271.59 billion, fetching a hefty nine times bid-cover ratio based on the original offer amount of P30 billion.
The bureau subsequently allocated an additional P50 billion during the eight-day public offer period, which ended on Aug. 12. Preliminary results of the primary offer period indicate an aggregate sale to retail investors of around 65 percent and to individual investors of around 49 percent.
Selling agents were required and directed by the bureau to sell down to retail investors at least 50 percent of their holdings and further sell down to individual investors at least 20 percent of their allocation. These new features of the offering are geared towards achieving the bureau’s objective to make the RTB more accessible to retail and individual savers.
Treasurer of the Philippines Rosalia De Leon reiterated the government’s commitment to develop the local capital markets and create investors out of ordinary retail investors through the RTB issuance program.
“This RTB offering gives ordinary Filipinos the investment opportunity to participate in the debt market and raise their savings and investment consciousness,” De Leon said.
The RTB is a special offering program of the government intended for retail investors, especially individual savers. The bonds pay a quarterly coupon and may be subscribed to by the public in minimum denominations of P5,000.
The Land Bank of the Philippines was designated as lead issue manager for the transaction. Joining Land Bank as issue managers were BDO Capital & Investment Corp., BPI Capital Corp., the Development Bank of the Philippines, First Metro Investment Corp. and SB Capital Investment Corp. (PR)
Published in the Sun.Star Cebu newspaper on August 21, 2013.