DABAWENYOS are encouraged to invest in the 19th Retail Treasury Bonds (RTB), issued by the Bureau of the Treasury, during the Investors’ Briefing Roadshow Thursday, March 30 at the Marco Polo Hotel Davao City.
“Aside from fulfilling the government’s funding requirements, RTBs are meant to promote financial literacy and financial inclusion among ordinary Filipino. RTBs are made available to individual investors and help develop an investment habit among all Filipinos. With RTBs, Filipinos can invest in the country’s shared success,” Alex Buenaventura, the president and chief executive officer of the Land Bank of the Philippines, said.
He also added investing in RTB is risk-free as the government is the issuer and the investors are guaranteed to be paid back by the maturity period.
The public offering started on Tuesday, March 28 and will last until April 6. There are financial and banking institutions that serve as selling agents to which interested individual investors can inquire and make transactions with.
These selling agents include BDO Capital and Investment Corporation, BPI Capital Corporation, China Banking Corporation, Citibank N.A., Development Bank of the Philippines, First Metro Investment Corporation, Land Bank of the Philippines, Philippine National Bank, Rizal Commercial Banking Corporation, Security Bank Corporation, and United Coconut Planters Bank among others.
To invest, the individual investor can inquire at the bank of their choice, fill out the required form, and pay the principal cost, which is a minimum of P5,000.
The RTL 19, which is a three-year tenor, will be issued on April 1 of this year and will mature on April 11, 2020. An interest rate of 4.25 percent will be locked down and quarter interest payments will be received by the investor.
However, the interest is subject to a 20 percent final withholding tax on coupon payment for the account of the bondholders which makes the interest 3.4 percent. The interest is void for tax-exempt institutions such as organizations or foundations.
Eduardo Francisco, the President of BDO Capital and Investment Corporation said they shortened it to a three-year tenor this year for less chances of interest fluctuations compared to the five-year and ten-year tenors.
RTBs are also acceptable as loan collateral depending on the terms and conditions of the bank or the financial institution transacted with. A video presentation was also played during the briefing showing the benefits of RTB to the investors.
Some said they used it as extra revenue especially during emergency cases, others have it as a growing savings in the bank, while others used it for traveling purposes.