Government looks to raise P30 billion from RTBs

THE GOVERNMENT is looking to raise at least P30 billion from the sale of its first retail Treasury bond (RTB) offering this year.

-  - Aaron Michael C. Sy

In a notice on its website dated July 30, the Bureau of the Treasury (BTr) said it is planning to sell a minimum P30 billion worth of five-year peso-denominated RTBs due in 2030.

This will be the government's 31* RTB offering and the first time that small-denominated government securities will be available on an e-wallet.

The rate-setting auction is scheduled for Aug. 5.

“The interest rate shall be based on current market levels of comparable securities rounded down to the nearest one-eighth (1/8) of one percent (1%),” the BTr said.

The final interest rate will be determined through a Dutch auction with the government securities eligible dealers. In a Dutch auction, the rate for the bond is determined by starting with the highest rate and incrementally lowering it until it is accepted by the auction participants.

The public offer period will run from Aug. 5 to Aug. 15, unless ended earlier by the Treasury.

The RTBs are scheduled to be issued and settled on Aug. 20. It will also mature on Aug. 20, 2030.

The RTB 31 will be sold in minimum denominations of P5,000 and in multiples of P5,000 thereafter, with a maximum invest-