THE BUREAU of the Treasury (BTr) on Wednesday launched one-year peso-denominated “Premyo bonds” with an interest rate of 1.25% per annum, as it seeks to attract more small investors to government securities.
The Treasury is seeking to raise P3 billion from the issuance. The offer period runs until Dec. 11.
During the bond’s launch, National Treasurer Rosalia V. de Leon said they have increased the number of winners in the quarterly draws. The Treasury will award P50,000 each to 20 winners from participants who invest P20,000 or below.
“As more Filipinos get familiar with government securities, they will get into the habit of investing and at the same time help the government expand its financing footprint in the retail sector,” Ms. De Leon said.
Similar to those issued in 2019, Premyo bonds require a minimum investment of P500. The interest is payable quarterly, and subject to a 20% final tax.
The Premyo bonds will be available through the mobile applications of Bonds.PH and Overseas Filipino Bank, and the BTr’s online selling platform.
Selling agents are Development Bank of the Philippines, BDO Capital and Investment Corp., China Bank Capital Corp., First Metro Investment Corp., Philippine National Bank Capital, UnionBank of the Philippines and Land Bank of the Philippines.
Domestic debt reached P6.44 trillion as of end-September, declining by 4% from end-August. This was 22% higher than the P5.26 trillion recorded in September 2019 due to an increase in the issuance of government securities to raise funds for the pandemic response. — KKTJ