Gov't raises P97-B from Treasury bonds

ABS-CBN News

Posted at Aug 17 2010 05:21 PM | Updated as of Aug 18 2010 01:21 AM

MANILA, Philippines - The government sold only P97 billion worth of retail Treasury bonds (RTBs) despite tenders of as much as P200 billion, the Bureau of Treasury said Tuesday.

Bulk or P85 billion was sold to public, and the rest to state-owned firms.

Last week, National Treasurer Roberto Tan said the government was sticking to its P100-billion cap for the sale of 5-, 7- and 10-year RTBs even if underwriters had requested to upsize the issue.

The treasury limited the daily sale of RTBs at P10 billion during the offer period so as not to breach the cap.

First Metro Investments Corp. (FMIC) Executive Vice President Juanchito Dispo earlier disclosed that orders reached P200 billion or double the maximum size set by government.

Aside from FMIC, the other arrangers were BDO Capital, BPI Capital, Development Bank of the Philippines, Land Bank of the Philippines, Metrobank, the Philippine National Bank and Rizal Commercial Banking Corp..

The government intends to use proceeds of the fresh RTB issuance to finance the country's budget deficit, which is expected to hit P325 billion this year.