July 15, 2021

PH is considering issuing retail dollar bonds.

To supplement government finances, the Philippines plans to issue its first-ever US dollar-denominated retail dollar bond (RDBs) aimed at overseas Filipinos (OFs), according to National Treasurer Rosalia de Leon.

De Leon said in a video conference on Thursday that the minimum investment in the proposed debt offering may be set at USD300.

“When compared to conventional ROPs (the dollar-denominated bond referred to as Republic of the Philippines bond), which are available for a minimum of USD200,000, this product functions as a more accessible financial instrument,” she added.

According to De Leon, the proposed sale will provide OFs with another investing alternative, particularly those located in the United States.

“Investors will not only be protected from possible FX (foreign exchange) risks or exchange concerns but will also be able to keep the value of their hard-earned US dollar savings,” she said.

Investors would also get the entire value of their investments, according to De Leon, since the government will handle the final withholding tax and interest on the ROPs.

She said that the government has partnered with a number of financial institutions to make it easier for OFs to establish bank accounts and invest in ROPs.

“With the views and comments of our fellow kababayan (compatriots) from all over the globe, we are sure that we will be one step closer to achieving our objective of further increasing inclusion and financial literacy for the average Filipino,” she said.

The government has set a borrowing goal of PHP3 trillion for this year, with 80 percent of the funds coming from domestic sources, mainly via the issue of Treasury bills (T-bills) and Treasury bonds (T-bonds).

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