The Bureau of the Treasury said Tuesday it is looking to raise at least P30 billion from the issuance this month of 5-year peso-denominated, fixed-rate retail treasury bonds (RTBs).
Along with new funds, the BTr is inviting holders of three- and five-year retail bonds, both due next month, to exchange them for new RTBs due in February 2029.
The 3-year RTB, issued in 2021, has a coupon rate of 2.375 percent with a face amount of P463.32 billion while the 5-year RTB issued in 2019 has a coupon rate of 6.250 percent with a face value of P235.92 billion.
The BTr will set the coupon on the new 5-year RTB at the auction set on 13 February. A public offer will start right after the auction and will end on February 23, or earlier depending on market demand. The maturing 3- and 5-year RTBs may be offered for exchange with the new ones during the offer period.
The new RTBs will be issued on 28 February.
The government plans a net domestic borrowing of P1.85 trillion this year to help plug a budget deficit projected to reach P1.4 trillion. The government is relying more on the domestic debt market to reduce foreign exchange risk.
