THE Bureau of Treasury (BTr) officially launched its one-year peso-denominated Premyo Bonds Para sa Bayan (Premyo Bonds) as part of its aim to cater more small investors to government securities.
BTr director Robert Dominick Mariano said the Premyo Bonds aims to raise funds for housing, education, health care, and social services, by offering at least P3-billion bonds.
"Premyo Bonds is part of the mandate of BTr to fund the requirements of the national government. The funds we will be raising, we will be supporting it in various programs and projects," Mariano said during the Habi at Kape press conference at Abreeza Ayala Malls on Wednesday, November 27.
He said individuals, cooperatives, retirement funds and provident funds may invest in the agency's bond with only a required minimum investment of P500.
"Gusto namin i-introduce sa mga kababayan natin yung kultura ng pag-iimpok at pag-iinvest (We wanted to introduce to our fellow countrymen the culture of saving and investment)," Mariano said.
The Premyo Bonds, which was officially launched on November 25, will give investors a chance to win P1 million via a raffle draw every quarter as well as P100,000 and P20,000 cash rewards.
He said these securities are risk free as it is "a direct obligation of the Republic."
The official added that the bonds will have a tenure of one year and an interest rate of three-percent per anum.
"Ang mababang initial investment sa treasuries ay worth P5,000. Sa Premyo Bonds, binaba namin ito to P500 because ang purely target namin are the retail ones, not for corporate or institutional investors (Initially, the minimum investment for treasuries is worth P5,000. For Premyo Bonds, we lowered it to P500 because the target of this is purely for the retails ones, not for corporate or institutional investors)," he said, adding they have the highest returns as compared to normal deposits.
Mariano said investors can already claim their Principal Investment after a year.
Meanwhile he said selected banks such as Development Bank of the Philippines, Land Bank of the Philippines, BDO Capital and Investment Corporation, China Bank Capital Corporation, and First Metro Investment Corporation, are the selling agents from which investors may order their Premyo Bonds.
He said the offer will run until December 13, while the issue date is targeted on December 18.