Treasury invites CL residents to invest in retail dollar bonds
By Marie Joy S. Carbungco
CITY OF SAN FERNANDO, PAMPANGA — Bureau of the Treasury (BTr) is inviting Central Luzon residents to start investing through its maiden offering of the retail dollar bonds (RDBs).
National Treasurer Rosalia De Leon said the launch of RDBs is another innovative financial instrument which will allow the BTr to not only fulfill part of its financing requirements for 2021, but also provide investors with a convenient, accessible, and affordable tool to diversify their investment portfolio. She said this will allow investors to invest in dollar denominated bonds for as low as USD300, which is much more affordable than the traditional Republic of the Philippines (ROP) bonds which requires a minimum investment of USD200,000.
“The RDB responds to the call for diversification of investments of our retail sector and contribute more to the government’s development efforts. With your support, we hope RDBs will break new grounds for our retail treasury bonds offerings,” De Leon said.
Only a minimum of USD300 is required for an individual to start investing. This provides an annual interest rate of 1.375% and 2.250% for the five and 10-year maturity period, respectively. “The interest rate is automatically credited to the investors’ account every quarter. What is good about this is that investors will receive full coupon payment because the final withholding tax on interest will be assumed by the republic,” De Leon said.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno expressed support to this offering, saying this provides a special opportunity for small and midsize investors to earn and at the same time, help fund the government’s recovery and resilience programs. Meanwhile, Finance Secretary Carlos Dominguez III urged the public to invest their savings in dollar bonds. “This is a win-win proposition. Buying them will help raise funds for our economic investment and the nation’s comprehensive effort to defeat the pandemic. This helps open up the financial system to small investors and encourages more efficient intermediation. Overall, this aids in restoring the vigor of the Philippine economy at the soonest possible time,” he said.
To avail of the RDBs, interested individuals may go to any of the 12 banks which are authorized selling agents of the BTR, to place direct investment via their US dollar accounts, or via Peso Clear through select online platforms for those without dollar accounts. These include Bank of the Philippine Islands, BDO Capital and Investment Corporation, China Banking Corporation, Development Bank of the Philippines, First Metro Investment Corporation, East West Banking Corporation, Land Bank of the Philippines, Metropolitan Bank and Trust Company, Rizal Commercial Banking Corporation, Security Bank and Trust Company, Standard Chartered Bank, and Union Bank of the Philippines.
“Another way is to invest online via the BTr online offering platform at www.treasury.gov.ph; and mobile banking applications bonds.ph, Landbank Mobile Banking App, and Overseas Filipino Bank Mobile Banking App,” De Leon said. Prospective investors can avail of RDBs until October 1, 2021. Issuance date is on October 8, with maturity date of five or 10 years from issuance, depending on the maturity date chosen.
