Invest in RTBs for as low as PHP5,000

 

The 26th Tranche of Retail Treasury Bonds (“RTB”) (“RTB26”) form part of the National Government’s program to make government securities available to retail investors.

 

Benefits to Investors:

  • Sovereign Backing. RTBs are peso-denominated investment securities issued by the Republic of the Philippines. Investments in RTBs are direct obligations of the Republic and are thus considered Investment grade.
  • Affordable. RTBs are affordable investments with a minimum placement amount of PHP5,000.
  • Frequent Interest Payments.  RTBs pay interest quarterly.
  • Relatively Higher YieldRTBs offer relatively higher yields compared to savings and deposit instruments.
  • Convenient. RTBs can be purchased from any of the 16 Selling Agent banks. Investors can even use their existing savings account as the settlement account for the placement of RTBs and receipt of interest.
  • Negotiable and Transferrable. RTBs have an active secondary market where investors can buy and sell government securities.

 

During the Public Offer Period, RTBs will be made available by the Bureau of the Treasury (“BTr”) through the Selling Agents to the following:

 

Individuals, Corporations, Financial Institutions, Cooperatives, Retirement Funds, Provident Funds, and other Institutional Investors.

 

Switch Program

 

RTB26 also offers a Bond Exchange mechanism for the following Eligible Bonds:

 

Series

Coupon Rate

Maturity

Exchange Ratio

FXTN 10-54

6.375%

January 19, 2022

1:1

FXTN 5-74

4.000%

January 26, 2022

1:1

 

Bondholders of the maturing Eligible Bonds have the option to convert their holdings to the new RTB26.

 

Terms of the Offering:

Issuer

Republic of the Philippines through the Bureau of the Treasury

Issue

Retail Treasury Bonds – Tranche 26

Issue Date

December 2, 2021

Maturity Date

5.5 years from Issue Date

Public Offer Period*

November 16 to November 26, 2021

Issue Price

At par (or 100%)

Redemption Price

At par (or 100%)

Coupon Rate

4.625% gross p.a.

Taxation**

20% final withholding tax on interest income

Payments

Quarterly

Listing and Trading

Philippine Dealing and Exchange Corporation

Denomination

Minimum denominations of PHP5,000 and in increments of PHP5,000 thereafter

Negotiability

Negotiable and transferrable

* The BTr has the discretion to adjust the Public Offer Period

** Not applicable for tax-exempt institutions

 

Joint Lead Issue Managers:

Development Bank of the Philippines

Land Bank of the Philippines

 

Joint Issue Managers:

BDO Capital & Investment Corporation

BPI Capital Corporation

China Bank Capital Corporation

First Metro Investment Corporation

PNB Capital and Investment Corporation

Union Bank of the Philippines

 

Offer period is from November 16 to November 26, 2021 only*.

* The BTr has the discretion to adjust the Public Offer Period

 

 

For more details, visit: www.treasury.gov.ph or contact your BDO representative now.