DOF confident it will raise over $1 billion from retail dollar bonds offering

The Department of Finance (DOF) is positive it will be able to raise over $1 billion from its sale of dollar-denominated bonds to the investing public.

The Bureau of the Treasury, an attached agency of the DOF, launched its second Retail Onshore Dollar Bonds offering on September 27. This will run through October 6, with the issue date scheduled for October 11.

The retail dollar bonds have a tenor of five years and a half and a gross interest rate of 5.750% per annum, payable every quarter until its maturity in 2029.

“We’re happy to share that the retail dollar bonds offering was oversubscribed by almost three times the initial target amount of $200 million, raising $611.2 million dollars during the auction,” Finance Secretary Benjamin Diokno said during his weekly briefing.

For her part, officer-in-charge Treasurer Sharon Almanza said that the demand of the retail dollar bonds was strong.

“It's been three days, but we're seeing the demand, we're close to the $1 billion initially that we targeted. We are confident that by next week, we'll be able to raise more than $1 billion,” she said.

Under the retail onshore dollar bonds offer, Filipinos can invest for as low as $200 and in multiples of $100 thereafter.

Apart from raising funds for the government’s budgetary requirements, Diokno said the dollar-denominated retail bonds offering is part of the administration’s goal to promote financial inclusion among Filipinos.

The Finance chief said the retail dollar bonds offer is “a big leap towards achieving financial inclusion for our citizens, especially our collar-earning Overseas Filipino Workers.”

“The administration of President Ferdinand Marcos Jr. has embarked on a six-year economic and social transformation agenda that endeavors to achieve real and tangible change for the Filipino people. With your investments, we manifest a better life for our families, communities, and the nation at large,” Diokno said. — BM, GMA Integrated News