The government raised $1.26 billion from the second offering of retail onshore dollar bonds on strong demand from investors, Finance Secretary Benjamin Diokno said over the weekend.
Diokno said in a briefing the target amount was upsized from the initial $1 billion. The first retail dollar bond auction was held in 2021 during the administration of President Rodrigo Duterte that raised $1.593 billion.
“That is not comparable [with the first RDB issuance]. Because the situation then [in 2021] was very different,” Diokno said.
The Treasury said $611 million was raised during the auction, but the total bids submitted reached $636 million. An additional $615 million was raised, but $1.26 billion was awarded.
The Treasury said it was a “very good turnout, considering the current market conditions.”
The second RDB offering has a tenor of 5.5 years and a gross interest rate of 5.750 percent per annum payable every quarter until its maturity in 2029.
Diokno earlier encouraged Filipinos around the world to invest in the second RDBs to bolster financial inclusion.
The RDBs’ features include lowered minimum investment amount from $300 to just $200 and in multiples of $100 thereafter.
The government issues RDBs, which are fixed-income instruments, to provide Filipinos with low-risk, affordable and convenient investments to diversify their portfolios.
The government has been conducting financial literacy sessions since January to ensure the success of the RDB offerings. Diokno said they hosted these sessions with over 700 overseas Filipinos across Europe, Japan, America, Canada and the Middle East.