Filipino Investors Encouraged to Invest in RTBs

BDO Capital & Investment Corp. (BDO Capital) is encouraging more Filipinos to continue supporting government-issued bonds, following the successful participation of local investors in the 29th tranche of Retail Treasury Bonds (RTBs).

BDO Capital President Eduardo V. Francisco emphasized that RTBs are a safe, reliable, and convenient form of investment, which also helps finance the government’s various undertakings across different sectors. He hopes that Filipino investors will invest again, as it is a chance for them to also help the government finance its projects.

The Bureau of the Treasury (BTr) was able to raise P283.71 billion from the issuance of the 5.5-year, 6.125% coupon rate RTB 29, allowing the BTr to shorten the nine-day offer period by two days. The overwhelming demand for RTB 29 fully affirms the investing public’s confidence in Philippine paper. On average, orders reached P130 billion per day during the offer period, according to the BTr. RTB 29 will mature 5.5 years after the issue date, or on August 22, 2028.

After the offer period, investors can still purchase RTBs in the secondary market at prevailing market rates.

Gabriel Lim, Corporate Finance head of BDO Capital, echoed Francisco’s stance, underlining that the benefits of RTB investments are two-fold. For every minimum investment of P5,000, investors can earn interest income for themselves and their families while becoming an active participants in government projects that benefit Filipinos.

Proceeds from RTB 29 will help finance various government projects in agriculture, infrastructure, education, and healthcare sectors.

The Development Bank of the Philippines and Land Bank of the Philippines were the joint lead issue managers of the offer. Meanwhile, aside from BDO Capital, the other joint issue managers of RTB 29 include BPI Capital Corp., China Bank Corp., First Metro Investment Corp., PNB Capital and Investment Corp., SB Capital Investment Corp., and Union Bank of the Philippines.