THE Bureau of Treasury (BTr) has recently made available to the public the 20th tranche of the retail treasury bonds (RTBs).
"Following the successful RTB 19 this issuance again affirms the government's commitment to work towards a stable sustainable and inclusive economy. This will also support the government's funding requirements especially in line with the administration's Build, Build, Build program," said Alex Buenaventura, president of the Land Bank of the Philippines (LBP), during the Davao leg of the RTB 20 Roadshow at Marco Polo Hotel Davao on Tuesday evening, November 21, 2017.
He said the RTB program aims to promote greater financial awareness among ordinary Filipinos by offering them a government-issued risk free investment bond that offers a higher yield at 4.625 percent.
In an earlier statement, BTr said offering RTBs to the general investing public is one of the ways for the Philippine Government to develop the local capital market by expanding the investor base of government securities.
"Moreover, this presents a viable option for Filipinos looking to achieve their financial goals while helping meet the National Government’s financing needs," BTr said.
"With a minimum investment of P5,000, RTB is made available and affordable to more Filipinos," Buenaventura said.
He said the RTBs are also marketable securities, which gives the investors the option to sell their investments should they need to.
The issue date of the RTBs will be on December 4, 2017 and the maturity date will be on December 4, 2022. It has an interest rate of 4.625 percent while the interest payments will be on a quarterly basis.
Public offer period is from November 20 to 29, 2017 on a first come, first serve basis. The BTr may adjust the offer period on their own discretion.
In a statement, the Bureau of Treasury said The Development Bank of the Philippines and Land Bank of the Philippines are the Joint Lead Issue Managers for this 20th RTB offering and are joined by BDO Capital and Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, and SB Capital Investment Corporation as Joint Issue Managers.