The Bureau of Treasury will soon be offering to the public Retail Treasury Bonds (RTBs). Tentative offering/auction date is scheduled on July 27, 2010. Indicative rates and terms are reflected in the attached Offer Letter.
Key features of Retail Treasury Bonds:
* earns fixed interest rate
* interest paid every 3 months during the term of the bond
* placement targeted at retail and institutional investors
* direct, unconditional obligation of the National Government
Indicative Maturity Date:
5 year RTBs – August 5, 2015
7 year RTBs – August 5, 2017
10 year RTBs – August 5, 2020
Minimum Investment:
The Retail Treasury Bonds shall be issued in scripless form and will be sold during the public offer period in minimum denominations of P5,000.00 and integral multiples thereof.
Indicative Rates:
5 years – 6.1000% – 6.2575%
7 years – 7.1000% – 7.2296%
10 years – 7.4000% – 7.5937%
Taxation:
Interest Income is subject to 20% withholding tax except if investor has a tax exempt status where, interest will not be subject to the 20% withholding tax
Indicative Auction Date: July 27, 2010
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Government Securities: Retail Treasury Bonds
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