Download bureau of the treasury announces the offering of retail treasury bonds

REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF THE TREASURY
INTRAMUROS, MANILA 2801
Funding the Republic
BUREAU OF THE TREASURY ANNOUNCES THE OFFERING OF
RETAIL TREASURY BONDS
2 September 2016 - The Bureau of the Treasury (BTr) is set to put on the auction
block at least P30 billion worth of retail treasury bonds (RTBs) today. The bonds,
maturing on September 2026, will be offered to the general investing public for
minimum denominations of P5,000 starting September 6 until September 16, 2016.
The 10-year debt paper, the eighteenth tranche of the Peso-denominated retail
bond offering of the government, aims to reach a wider retail investor base.
According to Treasurer Roberto Tan, “the government wants the ordinary retail
investor to have easier access to safe government debt securities.”
The RTB issuance is part of the government’s initiative of making government
securities available to retail investors and promoting investment-consciousness
among Filipinos. The RTBs represent the Philippine government’s direct,
unconditional, and general obligations and as such, are considered low-risk for
local investors. The RTBs will be distributed through qualified dealers and selling
agents which are required to sell at least half of their allocated volumes to retail
investors.
Amidst market volatilities stirred by global uncertainties, demand for Philippine
government securities is expected to remain strong in light of the country’s sound
economic fundamentals, strong domestic liquidity, and recent positive economic
growth. The Philippines has remained one of the fastest growing economies in
Asia with its robust gross domestic product (GDP) growth of 7.0% in the second
quarter of this year, ahead of major emerging Asian economies such as China
(6.7%) and Vietnam (5.6%). Inflation rates remained manageable while key policy
rates have been kept steady. The government also recorded a balance of payment
(BoP) surplus of US$848 million for the first half of the year, buoyed by strong
remittances and receipts from the business process outsourcing (BPO) sector.
This resilient growth is also supported by business friendly policies under the new
administration.
“As the maiden issuance of the Duterte Administration, this fundraising exercise
seeks to augment the funds available for the President’s 10-point socioeconomic
agenda, with particular emphasis on infrastructure projects,” Tan further added.
The Administration, seeking to achieve inclusive growth through increased social
spending, has set its medium-term target on infrastructure spending of about 6% of
the country’s GDP. The timely completion of these infrastructure projects is
intended to amplify the growth potential of the national economy.
Deputy Treasurer Erwin Sta. Ana said RTBs can be bought over the counter in any
of the selling agent banks that are accredited to distribute this instrument to the
Ayuntamiento Building, Cabildo Street corner A. Soriano Jr. Avenue, Intramuros, Manila 1002
public. The selling agent banks who will be responsible for the distribution of the
RTBs to the public will be announced after the auction on September 6.
The BTr is planning to hold national roadshows for this issuance in different cities
across the country, including Davao, Cagayan de Oro, Cebu, Ilo-ilo, Naga,
Batangas, Baguio, and NCR.
The BTr has tapped BDO Capital & Investment Corporation, BPI Capital
Corporation, the Development Bank of the Philippines, and Chinabank Capital as
Issue Managers for this retail bond offering. Land Bank of the Philippines and First
Metro Investment Corporation were designated as the Lead Issue Manager for the
transaction.
Ayuntamiento Building, Cabildo Street corner A. Soriano Jr. Avenue, Intramuros, Manila 1002