The Bureau of Treasury will start on Wednesday a one-week offer of US dollar bonds to retail investors to raise around $200 million from 5.5-year US dollar bonds for budget support.
The treasury will hold an auction on Wednesday to determine the coupon rate of the dollar bonds.
“The Republic reserves the right to change the overall size of the issue,” the Bureau of Treasury said in its notice to the public.
The retail dollar bonds, which matures on 11 April 2029, will be issued on 11 October this year at face value.
The Treasury said final withholding tax on coupon payments will be shouldered by the government while other taxes on interest income will be to the account of the investor.
In 2021, the government raised around $1.5 billion from the sale of 5- and 10-year retail dollar bonds. The minimum investment was around $300, with additional investment set at a minimum $100. The coupon rates were set at 1.375 percent for the 5-year paper and 2.250 percent for the 10-year bond.
The Treasury originally planned raising $886.2 million from the maiden retail dollar bond but upsized the issue because of strong demand.
