By Aaron Michael C. Sy, Reporter
THE PHILIPPINE government has raised P167.25 billion from the Retail Treasury Bond 32 (RTB 32) offering, the Bureau of the Treasury (BTr) said on Friday.
An additional P82.39 billion was raised from the offer period that ended Oct. 7, from the initial P84.86 billion raised at the rate-setting auction on Sept. 29, the Treasury said in a statement.
This also comes after the Treasury limited the public offering of the RTB 32 to retail investors starting Oct. 1.
The BTr said the amount raised from the bond exchange program will be announced at a later date.
“Proceeds from the RTB-32 issuance will support the government’s budgetary requirements
for various projects and programs such as education, health, infrastructure, agriculture,
among others,” the BTr said.
To help drive demand for the RTBs, the Treasury, together with the joint issue managers, conducted regional roadshows in Baguio, Batangas, Cagayan De Oro, Cebu, Davao, Iloilo, Naga, and Pampanga.
It also set up information booths in several areas in the National Capital Region (NCR) and conducted financial literacy sessions for overseas Filipino communities, local retail investors, and institutions to further enhance public awareness of the RTB program.
The total amount announced was higher than the P150-billion target previously mentioned by National Treasury Sharon P. Almanza for new money under the offer.
The two and a half year bonds, with a coupon rate of 6.875%, will be issued and settled on Oct. 12.
It also includes an exchange offer for holders of RTBs maturing on Oct. 20, 2026 (RTB 15-01), March 1, 2027 (RTB 15-02) and March 4, 2027 (RTB 05-15), as well as for holders of fixed-rate Treasury notes (FXTN) maturing on Dec. 7, 2026 (FXTN 20-13) and Jan. 4, 2027 (FXTN 03-30).
The bonds were sold in minimum denominations of P5,000 and in multiples of P5,000 thereafter through web-based channel via the BTr Online Ordering Facility through China
Banking Corp., Land Bank of the Philippines (LANDBANK), and First Metro Securities.
It was also available via application-based channels such as the LANDBANK mobile banking app, Overseas Filipino Bank mobile banking app, GCash via GBonds, PDAX, ATRAM Prime and ATRAM PERA mobile apps, and RCBC Pulz.
The Development Bank of the Philippines and LANDBANK were the Joint Lead Issue Managers, while BDO Capital & Investment Corporation, BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corporation, PNB Capital and Investment Corp., Unionbank of the Philippines, and Security Bank Capital Investment Corp. were the Joint Issue Managers for RTB-32.
INTERNATIONAL BOND STANDARDS
Meanwhile, Philippine financial regulators on Friday announced that pricing of peso-denominated government bonds for settlement purposes will adopt the international pricing convention effective Jan. 4, 2027.
This confirms all relevant regulations and systems will be in place before end-2026.
“This reform is part of our broader effort to modernize the Philippine financial system. Aligning with international standards makes it easier for the Philippines to compete for capital in an increasingly integrated global financial system,” Finance Secretary Frederick D. Go said in a separate press release.
Ms. Almanza previously said they are working to align bond pricing conventions with international standards as part of its efforts to ensure the inclusion of Philippine bonds in JPMorgan Chase & Co.’s Government Bond Index-Emerging Markets (GBI-EM), which is set to be announced on Jan. 29, 2027.
Other participating regulators include Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), Philippine Dealing and Exchange Corp. (PDEx), and industry associations Bankers Association of the Philippines (BAP), Trust Officers Association of the Philippines (TOAP), Fund Managers Association of the Philippines (FMAP), Money Market Association of the Philippines (MART), National Association of Securities Brokers Inc. (NASBI), Philippine Investment Funds Association (PIFA), and Philippine Life Insurance Association (PLIA).
The shift in bond pricing convention will be applied on PDEx’s revised fixed-income market rules and trading conventions, while regulators of financial institutions including the BSP, the SEC, and the IC, will support the industry and the public through the transition process.
“A deeper and more liquid capital market provides more investment opportunities while giving businesses additional ways to raise funds. A more robust bond market complements bank credit and helps make the Philippine financial market and economy more resilient,” BSP Governor Eli M. Remolona, Jr. said.
The BTr said there will be no actual impact for investors who hold bonds to maturity as most Philippine bond holders fall under this category, but some investors may see changes in the computation of the settlement value of government bonds.
It added that tax obligations will remain the same as the transition will not alter the contractual terms of the bonds.
Investors will continue to receive the scheduled interest payments (coupons) and principal at maturity, in accordance with the terms of their bonds, the Treasury said.
The reform aims to allow the government to borrow more efficiently and at lower rates by increasing participation in the government bond market and deepening market liquidity as well as investor base.
This would create more fiscal space, helping fund more and better public infrastructure and services as well as support more efficient price discovery and bond valuations.
The reforms will also benefit the private sector, as lower borrowing costs will help businesses expand, invest, and create jobs while allowing households to finance major investments and purchases.
“This is an important step in making the Philippine bond market more accessible and attractive to international investors. Broader participation in the government bond market will help lower borrowing costs, enabling the government to finance more productive spending, including public infrastructure and services,” Ms. Almanza added.
