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Thursday, March 2, 2023

BDO Capital Encourages More Filipinos to Invest in RTBs

BDO Capital & Investment Corp. (BDO Capital), a leading investment bank in the Philippines, is encouraging more Filipinos to invest in Retail Treasury Bonds (RTBs). The call comes following the successful 29th tranche of RTBs, which saw strong participation from local investors. BDO Capital President Eduardo V. Francisco has praised RTBs as a safe, reliable, and 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," Francisco said.

The Bureau of the Treasury (BTr) raised 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. On average, orders reached P130 billion per day during the offer period, according to the BTr. RTB 29 will mature on August 22, 2028, five and a half years after the issue date.

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.

With the success of RTB 29, BDO Capital is encouraging more Filipinos to invest in RTBs. RTBs are a safe and reliable form of investment that provides investors with a chance to earn interest income while helping to finance government projects that benefit Filipinos. The 29th tranche of RTBs shows that the investing public has confidence in Philippine paper.

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