Bureau of the Treasury Issues $1.26 Billion 2nd Retail Onshore Dollar Bonds

The Bureau of the Treasury (BTr) issued a total of USD 1.26 billion in 5.5-Year Retail Onshore Dollar Bonds (RDB 2) with a coupon of 5.75% per annum wherein final withholding tax on coupon payments will be assumed by the Republic of the Philippines. RDB 2 was formally listed on the Philippine Dealing and Exchange Board today.

Interest for the issuance poured throughout the auction and the public offer period, with the initial offering going six times oversubscribed from the minimum issue size of USD 200 million. This prompted the Auction Committee to award USD 611.2 million during the rate setting auction held last 27 September 2023. An additional aggregate amount of USD 650.66 million was raised throughout the 10-day offer period. An extensive series of local and offshore roadshows were conducted by the BTr in order to spread awareness of the new offering, as well as to encourage retail investors to park their hard-earned funds in investment grade Philippine government securities. With assistance from over 30 Foreign Service Posts, the BTr was able to reach out to Overseas Filipino communities in 16 countries across Asia, North America, Europe, and Australia.

“Invest & Manifest” was the central theme of the 2nd RDB offer, which envisions a life wherein each Filipino investor is able to reap and manifest the benefits of making financially sound decisions. The RDB 2 also reinforced the BTr’s support to financial inclusion by reissuing a unique financial instrument that diversifies the bureau’s product offerings and investor base. The RDBs cater to individual investors with its minimum investment of USD 200.00. In addition, investors were also given the option to invest in the RDB via Peso Clear through select online platforms. For continued accessibility, investing in the RDB was made available via the BTr’s own online ordertaking platform, the Bonds.PH Mobile Application, the LANDBANK Mobile Banking Application, and the Overseas Filipino Bank Mobile Banking Application. These platforms generated a total volume of USD 2.56 million from 1,126 transactions.

“The BTr continues to prioritize digitalization as a means of promoting inclusive finance. Through our myriad of web- and app-based investment channels, we are able to further our thrust of enhancing retail access to government securities. In fact, total volume was more than triple of what was raised by our digital platforms during the maiden offering of the RDB in 2021” stated BTr Office-in-Charge Sharon P. Almanza

Following a well-received RTB 29 issuance last February 2023, the overwhelming support from the investing public has allowed the BTr to raise a total of P355.57 billion from both its retail bond offerings. This comprises 21.50% of the National Government’s annual domestic funding program. The proceeds of the RDB will go towards funding the National Government’s key expenditures as approved by the 2023 National Budget.

​The Development Bank of the Philippines and Land Bank of the Philippines are the Joint Lead Issue Managers for the RDB offering. They are joined by 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 as Joint Issue Managers.

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