Dubai: Philippines is looking to raise 400 billion pesos ($7.2 billion) of treasury bonds being marketed to retail investors this month, and this presents a great low-risk investment opportunity for Filipinos everywhere.
The retail treasury bonds, called RTB 30 are a risk-free way for citizens to invest and earn income over five years.
“The RTB 30 is more than just a financial contract but a commitment to shared prosperity. It will help drive the government’s socioeconomic agenda forward and empower ordinary Filipinos to chart their path to financial freedom for a more secure future,” Finance Secretary Ralph G. Recto said in his keynote speech during the launch of the RTB 30.
Who can invest?
All citizens, in Philippines or abroad, can invest in the offering.
Existing holders of retail bonds can also exchange in for the RTB 30. Eligible exchange participants are existing holders of RTB 22 and 25.
Minimum investment and ROI
Perfect for small-scale investors, the RTB 30 offers a coupon rate of 6.25 per cent.
The bonds launched at the Ayuntamiento de Manila requires a minimum investment of 5,000 pesos or Dh334, and then multiples of 5,000 pesos.
So, if you were to invest 15,000 pesos (Dh985), you would earn a total of 4,687.5 pesos (Dh308) in five years.
Terms and tenure
The five-year bond, which matures in 2029, will pay out income every quarter until its maturity.
When can I invest?
The bonds will be offered to the general public through February 23 (Friday). The offer started on February 13, and will be settled on February 29.
How to invest?
Aside from over-the-counter transactions, RTBs can be purchased via the BTr’s (Bureau of Treasury) Online Ordering Facility for investors who are clients of the China Banking Corporation, the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LANDBANK), and the First Metro Securities.
The RTBs are also accessible via mobile banking through the LANDBANK, OFBank, and Bonds.PH applications.