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Thursday, March 2, 2023

Investing in RTBs is a smart and responsible way to earn a decent return on investment

Retail Treasury Bonds (RTBs) are indeed a safe and reliable form of investment, particularly for those who want to earn a decent return on their money without exposing themselves to significant risks. These bonds are issued by the government and are backed by the full faith and credit of the Republic of the Philippines, which means that investors can be assured of their safety.


Moreover, investing in RTBs is also a convenient way to support the government's efforts to fund its various projects and programs. By investing in RTBs, Filipinos can contribute to the development of the country's infrastructure, education, healthcare, and other vital sectors.


BDO Capital's encouragement to continue supporting government-issued bonds is also timely, given the challenging economic conditions caused by the COVID-19 pandemic. Many investors are looking for safe havens to protect their money and RTBs can provide that security.


BDO Capital & Investment Corp. (BDO Capital) encourages more Filipinos to continue supporting government-issued bonds following the rousing participation of local investors in the 29th tranche of Retail Treasury Bonds (RTBs). 


BDO Capital President Eduardo V. Francisco said RTBs are safe, reliable and a convenient form of investment, which also helps finance the government's various undertakings across different sectors.


"We hope (Filipino investors) will invest again. It's a chance for them to also help the government finance its projects," he said.


The Bureau of the Treasury (BTr) was able to raise P283.71 billion from the issuance of the 5.5-year, 6.125% coupon rate RTB 29, allowing the BTr to shorten the nine-day offer period by two days. The overwhelming demand for RTB 29 fully affirms the investing public’s confidence in Philippine paper. On average, orders reached P130 billion per day, according to the BTr, during the offer period. RTB 29 will mature 5.5 years after the issue date, or on August 22, 2028.


After the offer period, investors can still purchase RTBs in the secondary market at prevailing market rates.


Gabriel Lim, Corporate Finance head of BDO Capital, echoed Francisco's stance underlining that the benefits of RTB investments are two-pronged.


"For every P5,000 (minimum) investment that you put in, not only will you earn interest income for yourself and your family, but you also become an active participant in government projects that benefit Filipinos," he said.


Proceeds from RTB 29 will help finance various government projects in agriculture, infrastructure, education, and healthcare sectors.


Development Bank of the Philippines and Land Bank of the Philippines were the joint lead issue managers of the offer. On the other hand, aside from BDO Capital, the other joint issue managers of RTB 29 include BPI Capital Corp., China Bank Corp., First Metro Investment Corp., PNB Capital and Investment Corp., SB Capital Investment Corp., and Union Bank of the Philippines.



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