Treasury note offer raises P300B

THE government has raised P300 billion from an offering of 10-year fixed-rate notes that concluded on Wednesday, the Bureau of the Treasury (BTr) said.

The offering of the 10-year benchmark Treasury notes, which carry a coupon rate of 6.375 percent per annum, was said to have met with strong demand.

Its offering was started on April 15, 2025, and was made available to investors of various account types, including corporates, cooperatives, trust funds, retirement funds, provident funds, and other institutional investors.

A total of P197.3 billion in bids was received, 6.6 times more than the minimum issue size of P30 billion. This prompted the Treasury to award a total of P135 billion during the rate-setting auction.

Bids during the public offer period were even higher at P307.05 billion and the bureau garnered an additional P165 billion within the first five days. Hitting the P300-billion total prompted the Treasury to shorten the offer period, which started April 15, to April 23.

Settlement and listing at the Philippine Dealing & Exchange Corp. Fixed Income Board will be on April 28.

State-owned Development Bank of the Philippines and Land Bank of the Philippines were the joint lead issue managers. BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp. and Security Bank Capital Investment Corp. served as joint issue managers.

"This inaugural public offering of the 10-year benchmark FXTNs (fixed-rate Treasury notes) is not only about raising funds — it's about giving the market more ways to invest in their future and take part in the Republic's programs and goals," National Treasurer Sharon P. Almanza said in a statement.

"We thank all our investors for their trust and support for this historic milestone in the development of the Philippine fixed-income market," she added.

The Treasury said the strong demand showed that FXTNs were stable investments despite uncertainties in the global economy. It added that it also meant investors had confidence in the government's financial stability.

"The benchmark issuance also reinforces the BTr's commitment to building a resilient and efficient domestic capital market while helping fund the government's priority projects in the agriculture, infrastructure, education, and healthcare sectors," the Treasury said.

"Additionally, by establishing liquid benchmarks, the BTr provides reference points for price discovery and trading in the secondary market, bolstering liquidity and facilitating more efficient capital mobilization."