The Bureau of the Treasury launched Monday the Philippines’ maiden offering of peso-denominated Tokenized Treasury Bonds to raise at least P10 billion from the domestic capital market.
The TTBs are one-year fixed-rate government securities that pay semi-annual coupons, which will be offered to Qualified Institutional Buyers on Tuesday and issued on Thursday in the form of digital tokens, which will be maintained in the National Treasury’s Distributed Ledger Technology.
The tokenized bonds will be made available to eligible investors in minimum denominations of P10 million and in increments of P1 million, similar to conventional government securities offers. The Bureau of Treasury will implement a dual registry structure, with the DLT Registry running in parallel with the National Registry of Scripless Securities, the primary registry.
TTBs, which form part of Government Securities Digitalization Roadmap, aims to provide the proof of concept for the wider use of DLT in the government bond market. This proof of concept will serve as the starting point of the NG’s broader agenda of democratizing investment through digital technology, significantly reducing settlement risk and friction costs, ultimately leading to a financially inclusive local bond market.
Firm commitment offers to issue managers, Land Bank of the Philippines and Development Bank of the Philippines during the book building on Monday. Notice of awards will be provided on the same day.
