By Aaron Michael C. Sy, Reporter
THE PHILIPPINE GOVERNMENT on Tuesday raised P210 billion from its latest retail Treasury bond (RTB) sale — the third under the Marcos government and the first to accept subscription via an e-wallet.
The Bureau of the Treasury (BTr) said the move is in line with state efforts to attract ordinary Filipinos into investing in government securities.
“This launch is also timely,” Finance Secretary Ralph G. Recto said at the launch, noting that it comes after the enactment of a measure that promotes efficient capital markets.
“It is time for the capital market not only to cater to experts in finance, but also to the Filipino people. And that’s why we are aggressively making our RTBs available and accessible to everyone,” he added.
BTr data released after the rate-setting auction showed tenders hitting P354.175 billion, almost 12 times the P30 billion offered at the first RTB auction this year.
The five-year RTBs fetch a 6% fixed coupon, down slightly from 6.125% in February 2024. Awarded rates ranged from 5.625% to 6%, averaging 5.943%. Interest will be paid quarterly, the BTr said.
Despite the competitive coupon, the RTB yield was slightly above comparable five-year bonds quoted at 5.9519% in the secondary market, based on PHP Bloomberg Valuation rates.
National Treasurer Sharon P. Almanza said the P210 billion raised exceeded the P162 billion take from the previous RTB issuance, with strong oversubscription observed.
“With the launch of RTB 31 (new RTB due 2030), we aim to further strengthen our commitment to financial inclusion by making government securities even more accessible to the public,” she said in a speech, citing the new GBonds platform accessible via GCash.
As of Tuesday morning, the platform had more than 88,000 users and P41 million in transactions. A total of P133 million flowed through online platforms, spread across 1,120 transactions from 6,700 investors.
At a press briefing after the auction, Ms. Almanza said the Treasury aims to raise P300 billion in fresh funding, excluding volume generated through the bond exchange offer program.
‘GAME CHANGER’“We want to really tap retail investors,” she said. “If we are able to raise P90 billion more in fresh money, it will be a very successful RTB issuance.”
“If increasing the P210 billion to P300 billion and the rest will be retail, that will be a game changer for the Bureau of the Treasury and also for the Department of Finance and for this government, because that means that we really are able to target retail investors,” she added.
Despite ambitious targets, she said the government would not aim to surpass the P584.86 billion record achieved in last year’s RTB issuance.
“Given that we already substantially raised a portion of our requirements during the first half, and we still have several auctions that we will be conducting at the end of the year, we want to spread it out until the end of the year, making sure that investors will have instruments to place not only for RTB 31, but also for the rest of the year,” she added.
Ms. Almanza also pointed to a P300 billion benchmark issuance of 10-year fixed-rate Treasury notes (FXTN) in April, and said the total borrowing requirements for the remainder of 2025 remain under P800 billion, with upcoming auctions planned in September and the last quarter.
The BTr will continue to roll out new benchmark bonds and is preparing a regular swap program for RTBs under the National Registry of Scripless Securities (NROSS) system.
“You can expect another jumbo issuance for next year to establish a new benchmark,” she said. “We want to introduce a regular swap program… making sure… that NROSS will be able to accommodate a regular switch program.”
The RTB issuance excludes bonds for redemption under the exchange program, where roughly P400 billion in maturing RTBs remains eligible. Participation rates for prior swaps have ranged from 15% to 30%, with final allocation decisions left to the Treasury.
Retail Treasury bonds are designed for small investors seeking low-risk, government-backed instruments with higher yields than standard savings accounts.
The public offer period runs from Aug. 5 to 15, while settlement is on Aug. 20. The bonds will mature on Aug. 20, 2030. Holders of certain maturing FXTNs — due September 2025 and February 2026 — may exchange them for the RTBs, with a minimum conversion of P5,000, and repurchase prices from 99.79% to 100.42% of face value.
RTBs will be available in bank branches and digital platforms such as BTr’s Online Ordering Facility, the Bonds.PH app, Land Bank of the Philippines, Overseas Filipino Bank and GCash via GBonds.
The launch aligns with favorable macroeconomic conditions.
“Events unfolded in favor of the BTr,” a trader said, citing supportive inflation and US Treasury yields. “We think they can get close to P500 billion if they wish.”
July inflation was 0.9%, down from 1.4% in June, and well within the 0.5% to 1.3% forecast of the Bangko Sentral ng Pilipinas (BSP). It marked the fifth straight month of inflation staying below the central bank’s 2%-4% target.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., in a Viber message said demand for RTBs could climb further amid anticipated interest rate cuts.
BSP Governor Eli M. Remolona, Jr. has said that rate easing is “on the table” for the Monetary Board meeting on Aug. 28, after two rate cuts earlier this year that lowered the policy rate to 5.25%.
He expects two more cuts before yearend, with remaining Monetary Board sessions set for October and December.
