The Bureau of the Treasury (BTr) has raised a total of P283.71 billion from its retail treasury bond (RTB) offering after it was concluded yesterday.
Of the said amount, an initial P162.18 billion was raised during the price-setting auction of the 5.5-year RTBs held last February 7, while the rest was placed during the offer period.
“Total volume P283.711 billion, of which switch is P31.671 billion,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
“We capped at P250 billion but given strong demand we accepted more. It is a decision to reduce volume compared to last year. So we even closed earlier than scheduled,” she added, as the offer period was originally scheduled to end on February 17.
In September last year, the BTr raised P420.45 billion during the first retail bond offer under the Marcos administration.
During the price-setting auction, the demand for the retail IOUs reached P196.11 billion, more than six times the minimum principal amount of P30 billion.
The coupon rate for the RTBs is 6.125 percent, 28.6 basis points (bps) higher than the 5.839 percent Bloomberg Valuation Service reference rate for the five-year tenor in the previous day. In comparison to the six-year tenor, the rate is also 21.2 bps higher than the secondary market rate of 5.913 percent.
RTBs are sold in minimum denominations of P5,000 and integral multiples thereof.
The government also invited specific bond holders to exchange their eligible holdings maturing in March, April and May this year for the new RTBs.
The RTBs’ issue date will be on February 22.
