BTr to offer PHP 30 bn in 3-year Retail Treasury Bonds with Exchange Program
The Philippine government is offering PHP 30 billion-worth of 3-year Retail Treasury Bonds (RTBs) with 2.375% gross annual interest from February 9, 2021 until March 4, 2021 or earlier. This bond offering comes in tandem with the formal launch of the government’s Bond Exchange program which will allow holders of qualified securities to swap their existing holdings with the new 3-year RTB.
More about the Retail Treasury Bond to be issued:
Coupon Rate: 2.375% gross per annum (Subject to 20% final withholding tax)
Coupon frequency: Quarterly
Minimum investment: PHP 500k and in increments of PHP 5k
Settlement Date: March 5, 2021
Issue Date: March 9, 2021
For firm orders and further information, please call your Investment Specialist.
What is a Bond Exchange?
A bond exchange allows you to exchange eligible bonds or series of bonds for new or existing for newly-issued or existing ones. This allows investors to be more flexible with their investments and be open to more opportunities. It’s also a chance to reinvest early if you have a bond that is about to mature.
How to qualify for the Bond Exchange Program
To qualify you must hold any of the following:
| ISIN | Series Name | Interest Rate | Maturity |
|---|---|---|---|
| PIBD0721C574 | FXTN 07-57 | 3.500% | 20 March 2021 |
| PIBD1021D531 | FXTN 10-53 | 6.500% | 28 April 2021 |
| PIID0321F092 | RTB 03-09 | 4.875% | 13 June 2021 |
| PIID1021J039 | RTB 10-03 | 5.750% | 20 October 2021 |
| PIBD1021K551 | FXTN 10-55 | 5.750% | 24 November 2021 |
Important terms and conditions of the issuance:
Participants who are existing holders of the bond/s eligible for the switch cannot sell, transfer or use as collateral the tendered securities from the date of participation until the settlement date of the exchange.
There will be daily auctions where each institution will place bids for the participants – each bid should be backed by actual inventory in client’s account as per bid date.
Settlement of the switch auction would include the accrued interest earned by the client during the period from the last coupon date and the settlement date of the auction.
Similar to the previous auctions, BTr has the option to close the switch period early or extend the offer period.
For the full details and terms and conditions, please view the BTr’s Notice of Offering for RTB 25.
