FOR as low as P5,000 one can already invest in retail treasury bond (RTB).
This, after the Bureau of Treasury (BTr) launched on Tuesday, Feb. 13, 2024, RTB 30 designed for retail investors as a low-risk and higher-yielding savings instrument.
The BTr also held an onsite investor briefing in Cebu on Wednesday, Feb. 14.
A total of P212.7 billion was raised during the auction, more than seven times the initial target amount of P30 billion.
The RTB 30 is a five-year tenor investment with a gross interest rate of 6.25 percent per annum, payable every quarter until its maturity in 2029.
The public offering will begin on Feb. 13 until Feb. 23. Bond settlement is scheduled on Feb. 28.
RTBs are fixed-income instruments issued by the National Government that are low-risk, affordable and convenient. Purposely designed for retail investors, Filipinos may invest in RTB 30 for as low as P5,000 and in multiples of P5,000 thereafter.
The RTB 30 also offers an exchange program, which provides a convenient way for investors to re-invest their funds and mitigate reinvestment risk upon maturity of the eligible bonds. Eligible participants for the exchange are existing holders of RTB 22 and 25.
This 30th tranche of RTB with a campaign dubbed “Kaagapay mo sa buhay,” serves as an invitation for everyone to participate in shaping the country’s shared future, the Department of Finance said. It promotes “cheap investment opportunities for small savers to secure their future.” It also encourages Filipinos “to start investing in safe and stable sources of passive income while helping the government raise funds to finance its priority
projects nationwide.”
Proceeds of the bond sale will finance key projects in infrastructure, agriculture, healthcare and education, among others.
“We should instill in our people a mindset that embraces and normalizes a culture of saving and investing, all while actively participating in the nation’s development,” said Finance Secretary Ralph Recto in a statement.
All Filipinos, both here and abroad, can easily avail themselves of RTBs.
Aside from over-the-counter transactions, the RTBs can be purchased via the BTr’s Online Ordering Facility for investors who are clients of the China Banking Corp., the Development Bank of the Philippines, the Land Bank of the Philippines (Landbank), and the First Metro Securities.
The RTBs are likewise accessible via mobile banking through the Landbank, OFBank and Bonds.PH applications.
The Landbank and DBP were the joint lead issue managers for the RTB 30 offering with the BDO Capital and Investment Corp., BPI Capital Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital and Union Bank of the Philippines as joint issue managers.
Since its maiden issuance in 2001, the RTBs have promoted financial literacy and inclusion among Filipinos.
Over the last two decades, BTr has consistently demonstrated its commitment to making RTBs easily accessible to the broader investing public.