RP raises more than four times the amount from retail bond sale
09/22/2009 | 06:31 PM
The Philippines has raised more than four times the amount it intended to collect from a retail treasury bond (RTB) sale, beating the total earned from a similar transaction undertaken in 2007.
An estimated P115 billion was raised from the RTB sale, the Bureau of the Treasury (BTr) said on Tuesday.
Besides being more than four times the original issue size of P25 billion, the amount has surpassed proceeds worth P77.6 billion from a similar sale of two-year and five-year RTB two years ago.
Tuesday’s transaction has forced the BTr to call off the scheduled auction of 91-, 182-, and 364-day treasury bills worth P8.5 billion to complete the one-week offering of three-, five-, and seven-year RTBs.
The amount raised from the RTB sale could still increase once orders for the seven-year debt papers sold on Tuesday, deputy treasurer Eduardo Mendiola said.
The government sold P94.4 billion worth of RTBs to small investors and government-owned and controlled corporations.
Mendiola added that the BTr itself bought P20 billion worth of government securities to fortify its bond sinking fund.
Finance officials also gave the assurance that the government will continue to auction treasury bills and bonds during the last three months of the year to ensure steady supply.
The BTr was able to raise P25 billion from the initial RTB offering last September 15. Interest paid out for three-year, five-year, and seven-year RTBs were 5.250 percent, 6.250 percent, and 7.000 percent.
Overwhelming demand for three-year and five-year RTBs prompted the BTr to halt the sale last September 16. However, orders for the seven-year debt papers were allowed to be sold until September 22.
The country depends on foreign and local borrowings to cover its budget deficit and at the same time pay for its financial obligations.
It expects a budget deficit of P250 billion, equivalent to 3.2 percent of the Philippines’ gross domestic product (GDP). - GMANews.TV
An estimated P115 billion was raised from the RTB sale, the Bureau of the Treasury (BTr) said on Tuesday.
Besides being more than four times the original issue size of P25 billion, the amount has surpassed proceeds worth P77.6 billion from a similar sale of two-year and five-year RTB two years ago.
Tuesday’s transaction has forced the BTr to call off the scheduled auction of 91-, 182-, and 364-day treasury bills worth P8.5 billion to complete the one-week offering of three-, five-, and seven-year RTBs.
The amount raised from the RTB sale could still increase once orders for the seven-year debt papers sold on Tuesday, deputy treasurer Eduardo Mendiola said.
The government sold P94.4 billion worth of RTBs to small investors and government-owned and controlled corporations.
Mendiola added that the BTr itself bought P20 billion worth of government securities to fortify its bond sinking fund.
Finance officials also gave the assurance that the government will continue to auction treasury bills and bonds during the last three months of the year to ensure steady supply.
The BTr was able to raise P25 billion from the initial RTB offering last September 15. Interest paid out for three-year, five-year, and seven-year RTBs were 5.250 percent, 6.250 percent, and 7.000 percent.
Overwhelming demand for three-year and five-year RTBs prompted the BTr to halt the sale last September 16. However, orders for the seven-year debt papers were allowed to be sold until September 22.
The country depends on foreign and local borrowings to cover its budget deficit and at the same time pay for its financial obligations.
It expects a budget deficit of P250 billion, equivalent to 3.2 percent of the Philippines’ gross domestic product (GDP). - GMANews.TV
