PHL launches retail bonds; investors place over P70B in tenders

The Philippines launched another retail Treasury bond (RTB) offer Monday in a price-setting auction in which investors placed P70.96 billion in total tenders. The government is selling 10- and 15-year RTBs — pm offer until Monday, Oct. 17 —with a minimum issue size of P5,000 for both types of bonds. The 10-year paper, during Monday’s auction, fetched a 5.75-percent coupon rate and P22.98 billion in total tenders. The 15-year bonds fetched a 6.25-percent coupon rate and P47.98 billion in total bids. “We’re happy with the results," National Treasurer Roberto Tan said. With its latest offer, government may sell up to P250 billion in RTBs. It has also set a P40-billion daily cap throughout the six-day offer period. The approximately P250 billion includes around P10 billion which may be offered to state-owned corporations. Ten banks have received the government mandate to handle the planned sale, including BDO, First Metro Investment Corp., Metropolitan Bank & Trust Co., BPI Capital Corp., Development Bank of the Philippines, Land Bank of the Philippines, Rizal Commercial Banking Corp., Philippine National Bank, China Banking Corp. and Deutsche Bank AG. The issuance of RTBs partly makes up the government's savings mobilization program designed to make government securities available to retail investors and create savings consciousness among Filipinos. — PE/VS, GMA News