Retail T-bond offer under study

MANILA, Philippines — The Bureau of the Treasury (BTr) is still taking into consideration various factors before deciding to proceed with a possible Retail Treasury bond (RTB) offering, which would raise funds to cover the government’s maturing debt this month.

In an interview, National Treasurer Rosalia de Leon said the market is now anticipating a possible RTB issuance in the near term given that the government has to settle maturities amounting to around P70 billion on Feb. 19.

However, De Leon said the BTr would still need to look into market conditions before confirming the said fund raising activity.

“Given that we still have a very strong cash position, that’s something that we still have to confirm whether to move ahead (or not). And (we need to) also take into consideration other things before we confirm that we’re going to have the RTB sale because of that huge maturity on February,” she said.

De Leon said the BTr must consider budgetary requirements, especially now that the 2019 budget has been ratified by Congress.

She said the government must also watch the interest rate environment in the next two to three weeks.

“And, of course, the demand. We have to consider the tenor that investors will find more attractive to be able to buy the RTBs,” De Leon said.

Should the issuance push through, De Leon said the RTBs would have medium-term tenors.