The Marcos administration will borrow from small creditors, through the sale of retail Treasury bonds (RTBs), starting next week to help fund projects aimed at boosting the country’s post-pandemic recovery.
The Treasury Board (BTr) is initially expected to sell for 30 billion pesos worth of RTB at an auction on Tuesday, August 23. This will take place in place of the previous treasury bond auction scheduled for that day, which the BTr has already called off. .
On its social media site, the BTr announced the offer of RTBs for “investments” of at least P5,000 to retail investors.
This will be the first RTB broadcast under the Marcos administration, but the 28th for the entire Philippines.
National Treasurer Rosalia de Leon neither confirmed nor denied the upcoming fundraiser through the RTBs.
While RTBs are borrowed, BTr generally pitches them as an investment option for retail investors, given its higher annual returns compared to bank accounts and other investment instruments.
On its Facebook page, the BTr also said that RTB bondholders will help the economy recover, as the money they lend or invest will be spent on government programs and projects.
According to a Bloomberg report on Thursday, the BTr plans to issue six-year RTBs maturing in 2028, alongside an outstanding bond swap maturing this year and next.
As in previous RTB offerings, BTr plans to raise an initial amount of 30 billion pesos in the rate-setting auction, after which it will offer these IOUs for another one to two weeks, depending on demand. .
Last March, the Duterte administration’s 10th and final RTB foray raised 457.8 billion pesos through the sale of five-year debt securities, which yielded a coupon rate of 4.875%.
The government will borrow a total of 2.2 trillion pesos this year, of which 1.65 trillion pesos would come from local sources through the issuance of treasury bills and bonds. In the first half, the government has already borrowed about 1,070 billion pesos.
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