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RETAIL TREASURY BONDS TRANCHE 24

  • Updated
Republic of the Philippines

RETAIL TREASURY BONDS TRANCHE 24
5-YEAR RTBs DUE 2025
WITH EXCHANGE OFFER
 
Offer Period: July 16 – August 7, 2020
Issue Date: August 12, 2020
Minimum Investment: PHP 5,000.00 and in multiples of PHP 5,000.00 thereafter

BACKGROUND

The Retail Treasury Bonds (“RTBs”) forms part of the National Government’s program to make government securities available to small investors.
 
Key features of the RTBs
 
  • earns a fixed interest rate
  • interest rate is based on the prevailing market rate
  • interest is paid quarterly during the term of the bond
  • placement is targeted at retail and individual investors
 
During the Public Offer Period, Individuals, Corporations, Financial Institutions, and other Institutional Investors can purchase RTBs through the Online Ordering Facility, the Bonds.PH mobile application, and over the counter through any of the Selling Agents.

OBJECTIVES
 
  • Enhance the BTr’s capability to manage its financial needs
  • Demonstrate its prudence and commitment to diverse fundraising programs
  • Make government securities available to retail investors and create savings-consciousness and financial literacy among the Filipinos
  • Develop the local capital market by expanding the investor base of government securities and increasing the financial literacy of the public

The proceeds from RTB 24 will finance the government’s various expenditures focused on:
 
  • Supporting sectors most affected by the COVID-19 pandemic (i.e., the unemployed, MSMEs, and the country’s healthcare system)
  • Construction of Infrastructure projects o Refinancing of existing debt
  • Other national expenditures, focused more on the country’s efforts against the pandemic.

BENEFITS TO INVESTORS
 
  • RTBs are low-risk investment instruments. They are direct, unconditional, and general obligations of the Republic of the Philippines (“ROP”).
  • RTBs are higher-yielding investments versus time deposit instruments. They offer fixed quarterly interest income than other financial instruments.
  • RTBs are affordable and convenient. They are available for as low as PHP 5,000 per investment and can be purchased online.
  • RTBs pay interest income quarterly, compared to regular Treasury bonds which interest is paid semi-annually.
  • RTBs are liquid. They have a readily available secondary market where they can easily be bought and sold through the Selling Agents subject to minimum requirements and market rates
 
TERMS OF THE OFFER
 

HOW TO PURCHASE RTBs
 
The RTBs will be made available to the public during the Public Offer Period from July 16 to August 7, 2020. Investors may purchase the RTBs from any of the Selling Agents subject to the documentary and minimum deposit requirements of each Selling Agent.

 

Over the Counter
 
  1. Investors will be required to open a peso account or designate an existing peso account with the Selling Agent where interest and principal payments will be made.
  2. Investors must submit to the Selling Agent the requirements for purchasing the RTBs (i.e. Application to Purchase, Client Information Sheet, etc.).
  3. Investors must pay the Selling Agent the amount due for the RTB purchase and applicable bank fees.
  4. At the time of purchase of the RTBs, the Selling Agent will issue an Acknowledgement Receipt/ Official Receipt.
  5. Investors will receive a Confirmation Advice to be issued by the Selling Agent a few days after the Issue Date

Online Ordering Facility
 
  1. Log in to www.treasury.gov.ph and read through the details of the investment.
  2. Accomplish the Ordering Form, select a Settlement Bank (Must be either China Bank, DBP, FirstMetroSec, or LANDBANK), and agree to the terms and conditions.
  3. Log on to the chosen Settlement Bank’s Online Payment Facility to pay for the principal cost.
  4. A notice of successful payment may be printed as your proof of investment in the RTBs and a system-generated notice of successful payment shall be sent to your email address designated upon opening of a peso deposit account with the Settlement Bank or sent via SMS.
 
Bonds.PH Mobile App
 
  1. Download the Bonds.PH app on the App Store (for iOS devices) or Google Play Store (for Android devices).
  2. Open the app and create an account.
  3. Verify your email address and mobile number.
  4. Log in and verify your account by submitting the required document and information.
  5. Once your account is verified, cash in to add funds to your account.
  6. Purchase RTB 24 during the Public Offer Period through the app.

Trading of RTBs
 
  1. After the public offer period, investors can buy the RTBs from the secondary market at prevailing market prices.
  2. ​​​​​In case investors have to sell their RTBs prior to maturity, they may sell their RTBs through the Selling Agent from which the RTBs were purchased or to other Selling Agents subject to prevailing market rates.
  3. Depending on prevailing market rates, at the time of sale, the RTBs may trade at a premium or a discount to face value.

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