Fresh retail T-bond offer coming to market

The Marcos administration plans to sell Treasury bonds (T-bonds) to retail investors again in the first quarter to provide budgetary support and help repay old debt.

The upcoming retail T-bond (RTB) sale is part of the government’s broader plan to borrow a total of P2.46-trillion from creditors at home and abroad this year, Finance Secretary Ralph Recto said in a statement on Friday.

The Bureau of the Treasury (BTr) did not reply to questions about the size and tenor of the new RTB offering. But Recto said the issuance would encourage ordinary Filipinos to start investing in safe and stable sources of passive income.

RTBs have become one of the government’s go-to sources of local borrowings to help plug its budget hole, which is projected to hit P1.4 trillion this year.

The proceeds are seen to help raise the cash needed to retire old debt. Based on Bloomberg’s estimate, P700 billion local borrowings will mature in early March.

RTBs have gained popularity among Filipinos looking for affordable investment. In 2023, the government sold P283.71 billion worth of RTBs through traditional bank branches and digital channels.

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“The BTr is looking to engage more digital finance platforms, allowing the BTr to reach a wider investor base,” the finance chief said.

Recto said the government would remain “prudent” in its debt management by continuing to adopt a 75:25 borrowing mix in favor of domestic sources. —Ian Nicolas P. Cigaral INQ