Marcos gov’t raises P507B from RTBs amid ‘strong’ demand
The Marcos administration raised P507.16 billion from its 31st retail Treasury bond (RTB) offering, attracting everyday savers who were able to buy state-backed securities in bite-sizes through GCash.
The amount, however, was lower than the P584.86 billion borrowed in last year’s RTB sale.
This was expected, as National Treasurer Sharon Almanza had signaled that the government wanted to avoid bunching too much debt maturity in 2030, when the new securities will come due.
The BTr said the five-year bonds drew “very strong market demand.”
Of the total, P425.51 billion came in as new money, including P210 billion raised at the Aug. 5 rate-setting auction.
Another P81.65 billion was generated through a bond exchange program during the first four days of the offer period, which ran until Aug. 15.
The RTBs carry a coupon of 6 percent a year, higher than the 5.847 percent benchmark yield in the secondary market as of Aug. 15.
Notably, it was the first time such securities were made available on GCash via its GBonds feature.
“Proceeds from the RTB-31 issuance will be used to support the government’s budgetary requirements for various projects and programs in education, health, infrastructure, agriculture, among others,” the Treasury said.
RTBs have become one of the government’s main sources of local borrowings to plug its budget deficit, projected at P1.6 trillion this year, or 5.5 percent of gross domestic product.
Debt repayment
At the same time, proceeds could help repay part of the P813 billion in Treasury bonds maturing in 2025, including P516.34 billion in RTBs due in mid-August.
Small investors were able to buy RTBs for a minimum of P5,000, allowing them to take part in the Marcos administration’s P2.6-trillion borrowing program for 2025. By the end of 2026, outstanding obligations are projected to reach P19.1 trillion, up from an estimated P17.4 trillion at the close of 2025, latest budget documents showed.
The government targets to borrow a total of P2.68 trillion from local and foreign lenders next year, up from the 2025 financing goal of P2.6 trillion. Treasury data showed the debt load had already reached P17.27 trillion as of the end of June.
Fiscal planners say they will continue to favor onshore borrowing to limit exposure to foreign exchange risks. The Marcos administration has also made clear it is seeking an upgrade to an A-level credit rating, a distinction it hopes to achieve by keeping debt metrics in check while sustaining economic growth.
