Philippines gov’t to sell $596M retail treasury bonds
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The Philippines plans to sell at least 30 billion pesos ($596 million) worth of three-year retail treasury bonds to provide small investors with safe investment options, the Bureau of Treasury said on Thursday.
It would be the second retail bond issue under President Rodrigo Duterte’s nine-month-old government, which in September 2016 raised as much as 100 billion pesos from such offering.
“We want more Filipinos to get into the habit of investing, and become more financially aware of how their money could work harder for them,” National Treasurer Rosalia de Leon said.
The RTBs earn a fixed interest rate based on prevailing market rates with interest coupons paid quarterly.
The treasury bureau has tapped First Metro Investment Corp and Land Bank of the Philippines as joint lead issue managers.
BDO Capital & Investment Corp, BP Capital Corp, Development Bank of the Philippines, China Bank Capital Corp and SB Capital Corp are joint issue managers.
Questions & Answers
Q.What is the primary purpose of selling these retail treasury bonds?
What is the primary purpose of selling these retail treasury bonds?
The Bureau of Treasury aims to provide small investors with safe investment options through the sale of these three-year retail treasury bonds. It also encourages more Filipinos to get into the habit of investing.
Q.When can interested investors purchase these bonds?
When can interested investors purchase these bonds?
The public offering for these retail treasury bonds runs from March 28 to April 6. Investors can participate during this period to earn from a minimum investment.
Q.Which financial institutions are involved in managing this bond issue?
Which financial institutions are involved in managing this bond issue?
First Metro Investment Corp and Land Bank of the Philippines are the joint lead issue managers. BDO Capital & Investment Corp, BP Capital Corp, Development Bank of the Philippines, China Bank Capital Corp, and SB Capital Corp are also joint issue managers.
Q.What is the minimum investment amount for these retail treasury bonds?
What is the minimum investment amount for these retail treasury bonds?
Investors are given an option to earn from a minimum investment of 5,000 pesos. This allows smaller investors to participate in the offering and benefit from the fixed interest rate.
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