Finance Secretary Benjamin Diokno said Monday the successful Retail Dollar Bond 2 (RDB 2) issuance will drive long-term economic growth and enable greater financial inclusion among Filipinos.
“The settlement of the RDB 2 comes at a crucial time in the Philippines’ economic story. Amidst a backdrop of global economic uncertainty, the RDB 2 has allowed us to fulfill part of our domestic financing requirements for the year and progress toward building a more financially inclusive domestic capital market,” he said during the bell ringing ceremony on Nov. 6, 2023 at the BDO Equitable Tower, Makati City.
The Bureau of the Treasury (BTr) raised $1.26 billion or six times over the initial target of $200 million from the latest issuance.
Proceeds from government securities are used to fund the government’s priority Infrastructure Flagship Projects (IFPs) aimed at supporting long-term economic growth.
Diokno said that retail dollar bonds boost financial inclusion as it serves as a viable, low-risk, and affordable way to diversify the portfolios of small investors, allowing them to grow their hard-earned money.
“The RDBs, similar to the other retail government bonds we issue, are meant to be as inclusive and accessible as possible,” he said.
The BTr said that from a minimum investment amount of $300, the government lowered the amount to $200 and assumed the final withholding tax on the interest of the RDBs.
“These features have resulted in the overwhelming support of our retail investors, yielding over $146 million from over 3,900 investor transactions,” Diokno said.
The government also retained the PesoClear structure which allows peso account holders to purchase RDBs without having to open a separate US dollar account.
This allowed the government to raise $1.15 million from over 681 investor transactions.