Bureau of Treasury taps technology to entice, reach younger investors

INVESTING in government securities has been made easier with the Bureau of Treasury (BTr) maximizing the use and reach of technology in tapping young, tech-savvy, and investment-hungry professionals as potential investors.

On Wednesday, Feb. 8, 2023, BTr Central Visayas hosted the Visayas Roadshow of the Retail Treasury Bonds-29, a 5.5-year bond designed for retail investors as a low-risk and higher-yielding savings instrument with a minimum investment of P5,000 at an interest rate of 6.125 percent per annum.

The RTB-29 offering runs from Feb. 7 to 17. The bond offer was met with strong demand attracting P196.1 billion in total tenders—6.5 times the P30 billion initial offer.

A bond is a fixed-income investment that represents a loan made by an investor to a borrower. There are two types of bonds in the Philippines: government bonds and corporate bonds.

Besides purchasing RTBs through over-the-counter via 21 selling agents, Joaquin Leandro Sanchez, BTr’s officer-in-charge of Capital Markets, Strategy and Planning Division told SunStar Cebu, that they are making RTBs accessible through online ordering facility.

“The goal of the RTB is to attract as many investors as we could, so making it online, more seamless, and easier to avail of, more will avail themselves of the RTB,” Sanchez said.

Tech-savvy investors may purchase RTB through www.treasury.gov.ph, Bonds.PH, OFBank mobile banking app or Land Bank of the Philippines mobile app. All mobile applications can be downloaded for free via Google Play or App Store.

Buying and selling of the RTBs are also available in the secondary market.

Low risk, affordable

RTBs are medlum- to long-term debt securities issued by the country through the BTr. They are fixed-income securities that pay a fixed interest rate per annum over a specified period of time with a promise to return the principal at the end of the term.

The RTBs are designed to be low risk and affordable savings Instruments. They are considered low-risk because they are direct, unconditional and general obligations of the Republic of the Philippines.

RTBs are higher yielding compared to savings accounts and term deposits.

The proceeds from RTB-29 will finance the government’s various expenditures focused on agriculture, education, infrastructure, and healthcare sectors, including the enhancement of the country’s response against the pandemic and other priority projects nationwide. (EHP WITH KOC)

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