THE government on Tuesday sold a total of P79 billion worth of Retail Treasury Bonds (RTBs) to the public, and more are expected later this week as the said debt paper will be offered to state-owned companies, according to one of the underwriters.
Juanchito Dispo, executive vice president of First Metro Investment Corp., one of the bond underwriters, said the said figure was still preliminary but state-owned companies may buy up to P25 billion when the government starts selling the debt starting Wednesday. The offer period expires on March 3.
Last week the Bureau of Treasury (BTr) initially sold P20 billion worth of RTBs after the five-year debt fetched a coupon rate of 6 percent, while the coupon rate of the 10-year RTBs reached 7.375 percent.
It set a cap of P10 billion a day, but banks sold up to P28 billion of RTBs a day.
During the auction, total tenders reached P51.1 billion but underwriters of the debt sale expected that demand would likely hit at least P100 billion during the six-day offer period, which expired on Tuesday.
Based on the allocations released by the BTr, BPI Capital Corp. and Metropolitan Bank and Trust Co. got the biggest share and allowed to sell P2.1 billion each comprised of P750 million for the five-year paper, and P1.35 billion for the 10-year bonds.
Deutsche Bank, on the other hand, got an allocation of P1.85 billion with P500 million for the five-year paper and P1.35 billion for the 10-year securities.
BDO Capital, China Banking Corp., Land Bank of the Philippines and United Coconut Planters Bank got allocations of P1.25 billion each, comprised of P750 billion for the five-year, and P500 million for the 10-year government security papers.
Allied Banking Corp., BDO Universal Bank and Rizal Commercial Banking Corp. got allocations of P1 billion each, with P500 million each for the five- and 10-year notes.
The BTr still has to release the final figures of the RTB sales.
P97 billion worth of RTBs were sold last year when the government issued notes with tenors of three, five and 10 years, or almost four times more than its original P25 billion offering.
National Treasurer Roberto Tan earlier said proceeds of the first RTB offering this year will refinance maturing loans of the government, including some P28 billion worth of RTBs that would fall due in July, (P24 billion three-year notes) and December (P4 billion five year bond).
