• The Philippines achieved a milestone with over $10 billion raised through Retail Treasury Bonds, according to a recent Bloomberg report; PDAX confirms inclusion of platform volume.
• Sale supports government projects and addresses budget deficits, focusing on sectors like agriculture, infrastructure, education, and healthcare, as stated by the Philippine Bureau of Treasury.
• PDAX facilitates accessibility to treasury bonds offering at lower investment thresholds, with Tbills starting at ₱500 and TBonds at ₱5000.

A recent Bloomberg report disclosed that the Philippines has achieved a milestone by raising a record of over $10 billion through the issuance of Retail Treasury Bonds. Moreover, the Philippine Digital Asset Exchange (PDAX) told BitPinas that these numbers include volume from their platform.

$10 Billion Retail Treasury Bonds

According to the report, the Philippines raised a total of $10.5 billion or ₱585 billion through Retail Treasury Bonds, with 212.7 billion pesos sold in a rate-setting auction and 128.7 billion pesos raised in a public offering. Additionally, subscriptions totaling 243.5 billion pesos were received for bonds maturing in March. The debt maturing in February 2029 carries a coupon rate of 6.25%.

Consequently, according to the Philippine Bureau of Treasury (BTr), this sale will be aimed at supporting government projects and addressing a significant budget deficit in sectors such as agriculture, infrastructure, education, and healthcare.

In addition, the Retail Treasury Bond sale surpassed its $7 billion target, exceeding the previous record of 516.3 billion pesos set in 2020. This achievement is attributed to efforts aimed at providing economic and social support during the Covid-19 pandemic.

PDAX Treasury Bonds 

As per PDAX’s confirmation to BitPinas, the treasury bonds from the platform, initially introduced last year, are encompassed within the $10 billion volume.

“We’re playing a very significant role in making retail treasury bonds accessible to the everyday Filipino. We’re seeing an increase in uptake not just with the release of this retail treasury bonds offering which was offered at an amazing 6.25% p.a. interest rate but also with the weekly 91-day T-bill offering, the last one which had a rate of 5.59%,” the firm shared.

PDAX also emphasized that these instruments were previously unaccessible due to minimum investment sizes averaging around ₱500,000. The firm then expressed is delight to provide these opportunities for as little as ₱500 for the Tbills and ₱5000 for the TBonds.

In November, the BTr approved the sale of tokenized treasury bonds on the blockchain. This move enabled PDAX to introduce tokenized bonds on its platform, signifying notable progress in financial technology. 

However, while this marks the inaugural use of blockchain technology by the BTr to provide this security, Deputy Treasurer Erwin Sta. Ana emphasized that it is merely a trial phase.

In an interview, JV Pineda, COO and Head of Trading at Bonds.ph, and Chief of Staff at PDAX, emphasized that PDAX’s move to offer bonds alongside its cryptocurrency and non-fungible token (NFT) services stems from a dedication to enhancing financial inclusion in the Philippines. By offering bonds with lower investment thresholds than traditional banks, PDAX aims to provide Filipinos with increased accessibility to investment opportunities.

What are Treasury Bonds?

Treasury bonds, crucial for funding government projects, are fixed-interest securities issued by the BTr. 

Retail Treasury Bonds (RTBs) are long-term debt instruments issued by the BTr, catering to individual investors. These bonds offer varying tenors, spanning from 5.5 to 30 years, providing investors with flexibility in choosing investment durations. RTBs feature a fixed interest rate and pay interest quarterly, ensuring consistent returns for investors. 

On the other hand, Treasury Bonds (T-bonds) represent debt obligations with maturities ranging from 2 to 25 years, offering a diverse array of investment options. Typically issued at par with periodic coupon payments until final maturity, T-bonds provide investors with regular income streams. Some T-bonds may deviate from this norm and be issued without coupons, known as zero-coupon bonds, which are redeemed at face value upon maturity. 

Recent PDAX News

Recently, PDAX and the Philippine Red Cross (PRC) have collaborated to facilitate cryptocurrency donations, aiming to improve efficiency and speed in providing aid to Filipinos. With PDAX Donate, users globally can easily contribute to the PRC’s initiatives as it allows swift conversion to Philippine pesos and direct transfer to the PRC’s bank account, providing flexible options for receiving crypto donations.

The platform also recently listed the Hedera token, $HBAR, into its range of available cryptocurrencies for spot trading. 

This article is published on BitPinas: Philippines Hits $10 Billion Record in Retail Treasury Bonds

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