The government raised P300 billion from the sale of its 10-year inaugural benchmark fixed-rate Treasury notes as total subscriptions exceeded the minimum offer by over tenfold.
The Bureau of the Treasury (BTr) registered total bids amounting to P307.05 billion, much higher than the government’s minimum offer of P30 billion.
“Despite ongoing global economic uncertainties, the success of these notes offering highlights the strength of the domestic fixed-income market and investor confidence in government securities as stable investment options,” BTr said.
Due to the overwhelming demand from domestic investors, the BTr closed the offer period on 23 April, a day earlier than the programmed date. The BTr opened the offer period on 15 April.
The 10-year Treasury notes carried a coupon rate of 6.375 percent per annum.
The BTr said proceeds from the issued government securities will be allocated to agriculture, infrastructure, education and healthcare projects.
Inclusive wealth generation
National Treasurer Sharon Almanza said the successful issuance of the long-term Treasury notes also supports the government’s goal to help the public and companies manage wealth.
“This inaugural public offering of the 10-year benchmark Treasury notes is not only about raising funds --- it’s about giving the market more ways to invest in their future and participate in the Republic’s programs and goals,” she said.
Investors included corporates, cooperatives, trust funds, retirement funds and provident funds.
The successful sale of the Treasury notes came after S&P Global Ratings upgraded its credit outlook for the Philippines from stable to positive for this year and the next due to manageable inflation rates, debt, and easing interest rates.
