THE Bureau of the Treasury (BTr) is urging retail investors in Negros Occidental to avail government securities by investing on "more convenient and affordable" retail treasury bonds (RTBs).
BTr Director for Liability Management Services Ma. Nanette Diaz, who spoke at the 23rd RTB Tranche Roadshow at Seda Capitol Central in Bacolod City yesterday, said they are working on making government securities available to the investing public.
Diaz said the roadshow attended by at least 50 bank representatives from Manila and investors from the province is aimed at reaching out to more retail investors not just in the corporate world but also individuals who have not yet invested on government securities.
"By investing on RTBs, even ordinary people who can afford to invest will now have access to government securities," she said, adding that "unlike before, it has restrictions or limitations as banks required minimum investment amount ranging from P100,000 and above."
The RTBs are part of the government's savings mobilization program designed to make government securities available especially to small investors.
With a denomination of only P5,000 and in multiples of P5,000 thereafter, the issue of the RTBs has a maturity of three years and interest rate of 4.735 percent per annum payable quarterly.
The BTr said RTBs are designed to be a low-risk, higher yielding and affordable savings instrument.
These are considered credit risk-free or default free because they are direct, unconditional and general obligations of the government. In fact, these are higher yielding compared to savings accounts.
Among other key features of RTBs include earning fixed interest rate which is based on prevailing market rate, and placement is targeted at retail and individual investors, among others.
The BTr started the eight-day public offer on January 28, while the issue date is set on February 11.
The bureau, in a report, has fully awarded its auction offer of P134 billion of the peso-denominated bonds at an average rate of 4.297 percent, against tenders totaling P149.83 billion.
Diaz pointed out that issuing government securities is actually a financing program of the government in order to raise funds.
The proceeds she said are being used to finance the deficit of the government, infrastructure projects, and socio-economic programs that will support its economic agenda.
As of Wednesday, the BTr has raised more than P15 billion in treasury bonds which were ordered by investors.
Diaz said that based on RTB issuances, Western Visayas ranked sixth for the past five years.
"This means that in terms of sales performance, there are more orders coming from this region," Diaz added.
Moreover, there are two ways investors can purchase retail treasury bonds during the eight-day public offer period until February 6.
Diaz said they can either purchase over-the-counter by going into any of their choice settlement banks or through online.
The roadshow is being held simultaneously across all regions in the country, she added.
