Manila: Strong demand for the 10-year benchmark Fixed-Rate Treasury Notes (FXTNs) enabled the Bureau of the Treasury (BTr) to successfully raise PHP300 billion, concluding the offering a day ahead of the scheduled deadline.
According to Philippines News Agency, BTr announced on Thursday that it ended the offering of this debt instrument a day before April 24, after receiving a total of PHP307.05 billion within the first five days of the public offer period. Initially, the FXTN was offered for PHP30 billion during the rate-setting auction on April 15, but the award was increased to PHP135 billion after total bids reached PHP197.3 billion.
The FXTNs come with a fixed coupon rate of 6.375 percent per annum and were made available to a wide array of investor types, including corporates, cooperatives, trust funds, retirement funds, provident funds, and other institutional investors. Settlement and listing are set for April 28, 2025, on the Philippine Dealing and Exchange Corp.
The government collaborated with the Development Bank of the Philippines and Land Bank of the Philippines as Joint Lead Issue Managers. Additionally, BDO Capital and Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation, and Security Bank Capital Investment Corporation served as Joint Issue Managers.
National Treasurer Sharon Almanza remarked that this inaugural public offering of the 10-year benchmark FXTNs is designed to provide the market with more investment opportunities while contributing to the Republic's programs and goals. She expressed gratitude to the investors for their trust and support.
BDO Capital and Investment Corporation president Eduardo Francisco commented that the FXTN issuance is part of the government's strategy to diversify funding sources for its programs while leveraging favorable rates. He is optimistic that the government will continue issuing retail treasury bonds, as it has done in the past. "It's always on the table. Timing lang (It's just the timing)," he noted.
