Philippines closes record retail bond offering

The $10.45 billion raise from the Bureau of the Treasury will be directed towards sectors including agriculture, infrastructure, education and healthcare.

Philippines’ Bureau of the Treasury has raised a total of P584.9 billion ($10.45 billion) through the thirtieth tranche of retail treasury bonds (RTB 30), of which P212.72 billion was awarded at a rate-setting auction this month on February 13.

The offer period ran from February 13 to 23, and during the offer period, an additional P372.14 billion orders came in, of which P128.7 billion was raised in new money and P243.45 billion through the "switch program", according to a treasury announcement. RTB 30 is set to settle on February 28, 2024, and will mature on February 28, 2029, five years after the issue date. The interest being paid out is 6.25%

The RTB 30 was made available for as low as P5,000 through the traditional over-the counter (OTC) placement in bank branches, as well as digital channels such as the treasury's online ordering facility, the Bonds.PH mobile app, the Overseas Filipino Bank mobile app, and Land Bank's mobile app, the announcement said. Altogether there were 24 selling agents

Proceeds from the RTB 30 issuance will be directed towards “much needed funding support for the the agriculture, infrastructure, education, and healthcare sectors, among others” according to the statement.  

The Development Bank of the Philippines and Land Bank of the Philippines were the joint lead issue managers, while BDO Capital & Investment, BPI Capital, China Bank Capital, First Metro Investment, PNB Capital and Investment and the Union Bank of the Philippines were the joint issue managers for RTB 30.

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