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The Bureau of the Treasury (BTr) launched the 2 nd offering of its Retail Onshore Dollar Bonds (RDB 2) with a tenor of five and a half (5.5) years and a gross interest rate of 5.750% per annum that is payable every quarter until its maturity in 2029. A total of USD 611.2 million was raised during the auction, which was three times oversubscribed from the initial target amount of USD 200 million.
The RDB offer is part of the Republic’s goal of financial inclusion for all Filipinos providing investors a tool to diversify their investment portfolio aside from the usual Peso Retail Treasury Bonds (RTBs). Similar to RTBs, RDBs are fixed-income instruments issued by the National Government that are low-risk, affordable and convenient. Filipinos can invest in RDB 2 for as low as USD200.00 and in multiples of USD100.00 thereafter. The offer period for RDB 2, which is the BTr’s second-ever Dollar-denominated retail offering, will run from September 27 to October 6, 2023, with the issue date scheduled on October 11, 2023, subject to the discretion of the BTr.
With its campaign dubbed “Invest & Manifest,” RDB 2 enjoins everyone to help fund the National Government’s key national expenditures and sustain the country’s recovery from the COVID-19 pandemic.
“By offering US dollar-denominated instruments that can match natural cash flows, retail investors, especially our Overseas Filipino Community, are not only guaranteed a safeguard from potential FX risks but more importantly, an opportunity to maintain the value of their hard-earned USD savings. Furthermore, the National Government is assuming the final withholding tax on interest for RDBs so that investors can enjoy the full fruits of their investment. Lastly, given that the RDBs are available at a minimum of USD 200, this product serves as a more accessible financial instrument when compared to traditional ROPs, which are available for a minimum amount of USD 200,000.” said Officer-in-Charge Treasurer of the Philippines Sharon P. Almanza.
Meanwhile, Finance Secretary Benjamin E. Diokno noted that the RDB2 “is a big leap towards achieving financial inclusion for our citizens, especially our Dollar-earning Overseas Filipino Workers.” He further added, “The administration of President Ferdinand Marcos, Jr. has embarked on a six-year economic and social transformation agenda that endeavors to achieve real and tangible change for the Filipino people. With your investments, we manifest a better life for our families, communities, and the nation at large.”
The RDBs help promote financial literacy and inclusion among Filipinos as they are easily accessible to the investing public through online channels. Aside from the traditional over-the-counter subscription through the authorized Selling Agents, the public may also use BTr’s Online Ordering Facility via www.treasury.gov.ph, and mobile banking apps (MBAs), such as Bonds.PH, Land Bank of the Philippines MBA, and the Overseas Filipino Bank MBA.
The Development Bank of the Philippines and Land Bank of the Philippines are the Joint Lead Issue Managers for the RDB 2 offering, while BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation, SB Capital Investment Corporation, and Union Bank of the Philippines are the Joint Issue Managers.
Further, the Selling Agents for the RDB 2 offering include BDO Capital and Investment Corporation, Bank of the Philippine Islands, China Banking Corporation, Development Bank of the Philippines, First Metro Investment Corporation, The Hongkong and Shanghai Banking Corporation Ltd., Metropolitan Bank & Trust Company, Philippine National Bank, Security Bank Corporation, Land Bank of the Philippines, Union Bank of the Philippines.
Interested investors may visit the BTr’s website at www.treasury.gov.ph for more information on this issuance.
To know more about the Bonds in the Philippines, you may consider the following topics:
Considering Retail Dollar Bonds 2 for Investment Portfolio Diversification
Bureau of the Treasury's (BTr) Retail Dollar Bonds 2
What are Retail Treasury Bonds (RTBs) and How to invest?
What are Retail Onshore Dollar Bonds? And How to Invest in RDBs?
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Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
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