Retail treasury bond cap set, but orders still accepted


Posted at Apr 06 2017 01:16 AM

MANILA – Money managers have set a cap for the number of retail treasury bonds that people can order, but assured interested parties that they are still accepting offers.

“Among ourselves, we have to accept a minimum ratio of x has to go to retail and individuals. That ensures that we cannot finally allocate how much we will give,” Ed Francisco, president of BDO Capital and Investment Corp., told ANC’s “Business Nightly” on Wednesday.

The Bureau of Treasury required 30 percent of retail treasury bonds to go to retail, and 10 percent to individuals.

While they are still working on the mechanics on how to allocate the bonds, their system will ensure that “everyone gets a piece, even if it will be a fraction of what they initially ordered.”

“At least people will be able to participate in the retail treasury bonds. That way, we make sure that it gets spread out,” Francisco said.

However, if investors are unable to get a piece of the retail treasury bond pie, they can also invest in other things such as dollar-denominated securities, and the Personal Equity and Retirement Account (PERA), he said.

Their company is working to ensure that everyone, including overseas Filipino workers, will be able to invest in PERA. However, they are also optimistic about dollar-denominated securities, he said.

National Treasurer Rosalia de Leon said on Friday that demand for the government’s retail treasury bond issue has been “robust and strong,” showing increased interest for securities aimed at small investors.

Investors were drawn to the bonds because of a short 3-year tenor, appealing interest rates, and a minimum P5,000 investment, she said. - Business Nightly, ANC, April 5, 2017