Successful retail dollar bond issue to drive long-term economic growth, enable greater financial inclusion among Filipinos ? Diokno
Finance Secretary Benjamin Diokno has highlighted that the successful Retail Dollar Bond 2 (RDB 2) issuance will drive long-term economic growth and enable greater financial inclusion among Filipinos.
“The settlement of the RDB 2 comes at a crucial time in the Philippines’ economic story. Amidst a backdrop of global economic uncertainty, the RDB 2 has allowed us to fulfill part of our domestic financing requirements for the year and progress toward building a more financially inclusive domestic capital market,” he said during the bell ringing ceremony on November at the BDO Equitable Tower, Makati City.
Through the offering, the Bureau of the Treasury (BTr) has raised $ 1.26 billion ? six times over the initial target of $ 200 million.
Proceeds from government securities are used to fund the government’s priority Infrastructure Flagship Projects (IFPs) aimed at supporting long-term economic growth.
Diokno further highlighted that retail dollar bonds boost financial inclusion as it serves as a viable, low-risk, and affordable way to diversify the portfolios of small investors, allowing them to grow their hard-earned money.
“The RDBs, similar to the other retail government bonds we issue, are meant to be as inclusive and accessible as possible,” he added.
From a minimum investment amount of $300, the government lowered the amount to $200 and assumed the final withholding tax on the interest of the RDBs.
“These features have resulted in the overwhelming support of our retail investors, yielding over 146 million US dollars from over 3,900 investor transactions,” iokno said.
To maximize convenience, the government has retained the PesoClear structure which allows peso account holders to purchase RDBs without having to open a separate US dollar account.
This effort alone allowed the government to raise US$ 1.15 million from over 681 investor transactions.
The availability of digital transactions through the BTr’s Online Ordering Facility, Bonds dot PH mobile app, Landbank app, and Overseas Filipino Bank app, have allowed more people around the world to participate in these investments, raising over $ 2.56 million from 1,126 transactions.
Diokno said that $ 532,600 were from Overseas Filipinos residing in 32 different countries, highlighting that the success of the bonds was made possible by the continued support of all stakeholders.
The RDB 2 was formally listed in the Philippine Dealing and Exchange (PDEx) Board, which is the country’s trading platform for the fixed-income (FI) market. Listing or enrolling bonds on PDEx will enable the secondary market trading of these debt instruments. DOF Communications Group
