Retail Treasury Bonds Tranche 28 (“RTB 28”)
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 raise funds for the Republic of the Philippines’ (“ROP” or the “Republic”) priority projects nationwide
- To demonstrate the prudence and commitment of the Republic to diversify funding sources
- 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
- The proceeds from RTB 28 will finance the government’s various expenditures focused on:
- 1. Promoting the agriculture, education, infrastructure, and healthcare sectors, including the enhancement of the country’s response against the pandemic; and
- 2. Various priority projects nationwide
For more information about Retail Treasury Bonds, visit the Bureau of the Treasury‘s website.
Terms of Offering
| Issuer | Republic of the Philippines through the Bureau of the Treasury (“BTr”) |
| 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 | 5.5 Years |
| Interest Rate | 5.75% p.a. |
| Interest Payment | Quarterly, subject to 20% final withholding tax except for tax-exempt institutions |
| Use of Proceeds | RTB 28 promoting the agriculture, education, infrastructure, and healthcare sectors, including the enhancement of the country’s response against the pandemic and various priority projects nationwide |
| Maturity Date | 5.5 years from Issue Date (March 7, 2028) |
| Public Offer | August 23 – September 2, 2022, or as may be determined by the BTr |
| Issue Date | September 7, 2022 |
Note: The Issuer reserves the right to revise the timetable. You will be advised accordingly of any change in the timetable.
Exchange Offer
Bondholders of the following securities (“Eligible Bonds”) are eligible for the Exchange Offer, which may be exchanged for the new RTB 28. On Issue Date, the face value of the Eligible Bond holdings will be exchanged for the face value of the RTB 28 based on the Exchange Ratio.
| ISIN | Series Name | Interest Rate | Maturity |
|---|---|---|---|
| PIBD1022I570 | FXTN 10-57 | 4.750% | September 13, 2022 |
| PIID0522L114 | RTB 05-11 | 4.625% | December 4, 2022 |
| PIBD1022L585 | FXTN 10-58 | 4.000% | December 6, 2022 |
| PIID0323B101 | RTB 03-10 | 4.375% | February 11, 2023 |
The Eligible Bonds, with a minimum amount of Php 5,000.00 and integral multiples thereof, may be exchanged for the new RTB28. On September 7, 2022 (the “Issue Date”), the face value of your Eligible Bond holdings will be exchanged for the face value of RTB 28 in the ratios of:
| ISIN | Series Name | Exchange Ratio |
|---|---|---|
| PIBD1022I570 | FXTN 10-57 | 1.0000 |
| PIID0522L114 | RTB 5-11 | 1.0000 |
| PIBD1022L585 | FXTN 10-58 | 1.0000 |
| PIID0323B101 | RTB 3-10 | 1.0000 |
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
For more Inquiries you may contact
[email protected], [email protected], [email protected]ritybank.com.ph, and [email protected]