By DOTr PRI
MANILA – In a remarkable feat, the Bureau of the Treasury (BTr) successfully raised over $611.2 million in the auction of the second tranche of US-dollar denominated Retail Treasury Bonds (RTB), known as “Retail Dollar Bond 2” or RDB2. This achievement is more than three times the initial target of $200 million, which was announced earlier this week.
The BTr set a competitive coupon rate of 5.75 percent for the 5.5-year debt paper. RDB2 is scheduled to be issued on October 11, 2023, with maturity set for April 11, 2029.
Sharon Almanza, Officer in Charge of BTr, emphasized the significance of RDB2, stating that its return follows the success of RTB 29, issued in February, which was made available to overseas-based Filipinos in 61 countries. Almanza noted, “The issuance of RDB2 is better than before as we strive for this product to be more accessible to retail investors.”
The RDB made its debut in 2021, raising approximately $1.6 billion for the government. In the latest RDB2 auction, the BTr offered $636 million worth of RDB2, while eligible dealers of government securities submitted bids totaling $636.2 million.
Finance Secretary Benjamin Diokno highlighted that the launch of RDB2 is the result of efforts initiated in January, including an international roadshow by the Marcos administration’s economic team, which featured a financial literacy campaign for overseas-based Filipinos. Diokno revealed that approximately 700 Filipinos attended financial literacy sessions held during visits to Singapore, the United States, Germany, the United Kingdom, Canada, Qatar, and the United Arab Emirates.
Diokno emphasized that RDB2 promotes financial inclusion through three key initiatives. First, the minimum investment amount was lowered from $300 for the maiden RDB to $200 or the peso equivalent for RDB2. Second, the government is shouldering the final withholding tax on interest for investors using US dollars, ensuring they fully enjoy the benefits of their investments. However, investors purchasing RDB2 through authorized selling agents will be subject to fees. Third, the Treasury is facilitating digital transactions, enabling investors to participate without visiting bank branches. This can be done through BTr’s online selling platforms and mobile applications provided by Landbank of the Philippines, Union Bank of the Philippines, and Overseas Filipino Bank.
