Diokno says minimum offering for bonds is P5,000 allowing small investors to contribute to PHL dev’t
(Eagle News) – The Philippine government’s Bureau of Treasury has launched the 28th tranche of its retail treasury bonds that “allow investors to contribute to nation-building while growing their hard-earned savings with better returns.”
The Department of Finance said that this is the first offering under the administration of President Ferdinand Marcos Jr.
“This issuance serves as an important component of the national government’s fundraising efforts to finance our development programs aimed at building a sustainable, inclusive, and broad-based economy,” said Finance Secretary Benjamin Diokno at the launching program of the bond offering on Tuesday, August 23.
Diokno said that retail treasury bonds are safe, low-risk, and affordable investment instruments. It has a minimum investment amount of P5,000.
“These relatively higher yielding government securities strengthen financial inclusion and encourage broader participation in the capital market,” the DOH chief said.
-Strongest performing financial instrument-
Retail treasury bonds have been the strongest performing financial instrument in the Treasury’s portfolio of bond offerings in the last two decades.
The DOF said that since the first issuance in 2001, the government has raised over P4.37 trillion from these offerings.
For this year 2022, the government said it aims “to raise P2.2 trillion to enable the economy’s strong and resilient growth.”
As part of its prudent debt management strategy and domestic capital market development initiatives, around 73 percent of the government’s financing was drawn from domestic sources from 2016 to 2021, the DOF said.
Diokno said that the country’s growing retail sector is proof that the retail treasury bonds are a viable pillar of domestic financing. In fact, the retail treasury bonds now account for around 35 percent of BTr’s outstanding government securities.
The DOF said that the retail treasury bonds have a consistently strong reception from both local and overseas investors.
(Eagle News Service)