Retail Treasury Bonds Tranche 27 (“RTB 27”)
Low risk, fixed term investments issued by the Republic of the Philippines through the Bureau of the Treasury to help you invest in a better future.
Overview
Retail Treasury Bonds or RTBs are medium to long-term debt instruments issued by the Republic of the Philippines through the Bureau of the Treasury which are primarily used to fund the Government’s projects and programs. RTBs are specifically structured to provide retail and individual investors with a safe and affordable investment outlet.
Key features of the RTBs:
- Earns fixed interest rate over the term of the bond
- Interest rate is based on prevailing market rates, determined during the auction date
- Interest is paid quarterly during the term of the bond
- Targeted at retail and individual investors
Objectives of the RTB:
- To enhance the Republic’s capability to fund priority projects nationwide
- To demonstrate the prudence and commitment of the Republic to diversify fundraising programs
- To make government securities available to retail investors, especially individuals
- To promote financial literacy among Filipinos
- To develop the Philippine capital market via the provision of a prudent investment with higher yields than term deposits
For more information about Retail Treasury Bonds, visit the Bureau of the Treasury‘s website.
Terms of Offering
| Issuer | The Republic of the Philippines |
| Issuance | Retail Treasury Bonds with Exchange Offer |
| Eligible Investors | Individuals, Corporates, Cooperatives, Retirement Funds, Provident Funds |
| Minimum Issue Amount | Php 30 Billion |
| Minimum Investment | Php 5,000; In multiples of Php 5,000 thereafter |
| Tenor | Five (5) Years |
| Interest Rate Benchmark | Based on the [5 -Year] benchmark based on current market levels |
| Interest Rate | 4.8750% p.a. |
| Interest Payment | Quarterly, in arrears on the last day of each 3-month Interest Period |
| Taxation | Subject to 20% Withholding Tax (excluding tax-exempt institutions) |
| Use of Proceeds | RTB 27 will finance the government’s various expenditures, focused on the country’s response to the COVID-19 pandemic, infrastructure projects, and refinancing of existing debt. |
| Auction Date | February 15, 2022 |
| Public Offer | February 15 to 28, 2022 |
| Issue Date | March 4, 2022 |
Note: The Issuer reserves the right to revise the timetable. You will be advised accordingly of any change in the timetable.
Exchange Offer
| ISIN | Series | Interest Rate | Maturity | Exchange Ratio |
|---|---|---|---|---|
| PIBD2022C021 | FXTN 20-02 | 15.0000% | 14 March 2022 | 1.0000 |
| PIBD0322G247 | FXTN 03-24 | 4.7500% | 04 July 2022 | 1.0000 |
Bondholders of the following securities (“Eligible Bonds”) are eligible for the Exchange Offer, which may be exchanged for the new RTB 27. On Issue Date, the face value of the Eligible Bond holdings will be exchanged for the face value of the RTB 27 based on the Exchange Ratio.
Why Invest in Retail Treasury Bonds?
Affordable
Minimum investment of Php5,000
Low-Risk Investment
Direct, unconditional and general obligations of the Republic
Relatively higher yield
Offers higher fixed quarterly interest income compared to other term deposit instruments
Convenient and accessible
Available nationwide via branches of selling agent banks
Negotiable and transferable
May be easily bought and sold via the secondary market through banks or brokers