The Philippines’ Bureau of The Treasury issued an invitation to overseas Filipinos to invest in Retail Treasury Bonds (RTB) in a Zoom presentation last Thursday, July 23.
The presentation was a joint effort by the Department of Foreign Affairs (DFA), Department of Trade and Industry (DTI) and the Bureau of the Treasury (BTr), and included remarks by Philippine Ambassador to the U.S. Jose Manuel Romualdez and a message from Treasurer of the Philippines Rosalie V. De Leon.
Designated as RTB24 Ahon Pilipinas (Progreso Bonds Para Sa Bayan), money generated from the 24th offering of retail treasury bonds to the public will help the Philippine government support its economy as well as its growth and rehabilitation efforts. Aside from being cost-efficient, RTBs help the Philippines become less reliant on foreign exchange which reduces the country’s vulnerability to global economic shocks.
According to the presentation, “every peso invested in RTBs is directed towards the country’s emergency, recovery and resiliency funds, financing the fight against the effects of the COVID-19 pandemic.”
Since the government started offering RTBs, it has generated Php2.6 trillion.
The retail treasury bonds, which are financially secured by the Philippine government, has an issuance date of August 12, 2020 and runs for a period of five years, ending on August 12, 2025. It has a coupon (interest) rate of 2.625% per annum (subject to 20% final withholding tax), and quarterly interest payments are automatically credited to investors’ Philippine bank accounts. RTB24 will be available until August 7, 2020, after which they may be found in secondary markets.
The minimum investment is Php5,000, while the maximum amount for any single transaction is Php500,000. Individuals, corporations, cooperatives, retirement funds and provident funds are welcome to invest in retail treasury bonds, according to the BTr presentation.
As an example, the Treasury showed that a Php100,000 investment will have a yield of Php525 per quarter, or Php2,100 per year.
To participate in the RTB24 offering, investors must have a Philippine bank account, which will be the main designated instrument where interest payments are made and where the principal amount is returned after the five-year period.
For overseas Filipinos who have Philippine bank accounts, they may invest by going online via www.treasury.gov.ph (click on the RBT24 Ahon Pilipinas section in the website) or by downloading the Bonds.ph app on their mobile phones. A step-by-step process on both the Bureau of The Treasury website and mobile app will guide investors on how to invest their money in the RTB24 offering.
Treasury and bank officials on the Zoom call advised overseas Filipinos who do not have Philippine bank accounts and who wish to invest in the retail treasury bonds offering to call local branches of Philippine banks in their respective areas to inquire about opening an account or getting assistance on investing in in RTB24 Ahon Pilipinas (Progreso Bonds Para Sa Bayan).
Banks acting as issue managers of RTB24 in the Philippines include Development Bank of the Philippines, Land Bank of the Philippines, BPI Capital Corporation, Chinabank Capital, First Metro Investment Corporation (Metrobank Group), PNB Capital, RCBC Capital Corporation, SB Capital (A Subsidiary of Security Bank) and Union Bank.