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Friday, March 29, 2024

Treasury generates nearly P5b from first-time sale of Premyo Bonds

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The national government through the Bureau of the Treasury successfully raised P4.961 billion from the first-time sale of Premyo Bonds on strong demand from investors.

The Treasury said over the weekend the amount was over 65 percent higher than the initial issue size of P3 billion. Investors include individuals and eligible institutions, who make investments on behalf of their individual members. 

Finance Secretary Carlos Dominguez III said this type of bond float now formed part of the government’s proactive financing strategy and supported President Rodrigo Duterte’s goal of financial inclusion for all Filipinos. ]

Dubbed “Invest Pa More, Panalo Pa More Premyo Bonds Para Sa Bayan,” the prized bond float received wide participation among small savers and overseas Filipino workers with its offer of cash and other rewards on top of income from a safe investment.

The Treasury said the use of both onsite and online purchasing platforms enhanced the ease of access. Of all online transactions, more than 44 percent were investments of P5,000 and below, indicating the Premyo Bonds successfully reached retail investors.

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Those who purchased the Premyo Bonds will earn 3 percent a year to be paid quarterly for one year. 

For a minimum investment of P500, investors have a chance to win up to P1 million every quarter. Non-cash rewards in the form of condo units and a house and lot will also be given away to the winners of the top cash prize of P1 million. 

Winners will receive the rewards net of all applicable taxes, fees and charges.

Investors who were previously unbanked, without access to financial services and vulnerable to predatory lending practices, opened bank deposit accounts to participate in the Premyo Bonds. 

The BTr said as of Dec. 13, 2019, over 1,700 new bank accounts were opened. It said the partial figure indicated how the Premyo Bonds and similar products could contribute to financial inclusion in the country by encouraging unbanked Filipinos to start saving and investing. 

Because of the good reception of Premyo Bonds, the issue size was increased from the initial P3 billion to close to P5 billion, and the total prize pool was likewise raised from the initial P3 million to P4.5 million to be raffled out quarterly.

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