Doha: Overseas Filipino Workers (OFWs) looking for a long-term investment option can avail the upcoming Retail Dollar Bonds (RDBs) offering of the Philippine government, expected to launch this month with a minimum placement of only $200.
In a recent online financial literacy session discussing the Philippine government’s Retail Dollar Bonds 2 (RDB2) offering, Philippine Ambassador to Qatar, H E Lillibeth V Pono highlighted the unique features of project.
“The retail treasury bonds that we avail of – whether in peso or dollar denominations – represent the money that we lend to the Philippine government. That money is then used for the construction of projects and implementation of programmes that ultimately redound to the benefit of our fellow Filipinos.”
She pointed out that the RDB2 should be a welcome addition to the investment portfolio of OFWs seeking to increase their hard-earned money while contributing in the development of their country.
RDBs will be pushed through in May and is not only limited to OFWs but also to Philippine residents, according to Philippine Ministry of Finance Secretary, Benjamin E Diokno.
The annual interest rate for five-year investment in 2021 was set at 1.375 percent; and the current yield also for a five-year investment due in 2028 is at 4.274 percent.
RDBs are US dollar-denominated government securities, issued by the Republic of the Philippines via the Bureau of the Treasury (BTr) and enjoy the following benefits: Sovereign backing; frequent interest payment; convenient, affordable, relatively higher yield; and contributes to nation building.
According to Jose Angelo Abad, senior investment officer of Development Bank of the Philippines, the key features of the RDBs is it is direct, unconditional, unsubordinated obligations of the Republic.
Minimum placement is US$200, and increments of US$100 thereafter, he stressed.
On taxation, Abad said investor shall receive full coupon payment tax-free, and placement method is either straight US$ or Philippine Peso.
Overseas Filipino Bank Overseas Representative Officer for Europe, Asia Pacific, Latin America, and Oceania, Leover Loyola said there are several investment platforms available including over-the-counter or visit any authorised Selling Bank Agents, through BTr online ordering facility or invest via treasury.gov.ph and app-based channels – Land Bank, OF Bank and Bonds.ph which can be downloaded at Google Play and App Store for free.
You can earn through quarterly interest payment, on a five-year or 10-year investment.
There are three easy steps to purchase a Retail Dollar Bond: Order online, go to treasury.gov.ph and fill out the online form, choose First Metro Securities Brokerage Corp as Settlement Bank; second, pay through FirstMetroSec; and third, confirm your order.
The Financial Literacy session on the Philippine government’s upcoming launch of RDB2 was held online not only in Qatar, but also in Saudi Arabia, Canada, Switzerland, USA, the UK, and Ireland.
Philippine government raised $1.593bn through the country’s first-ever onshore RDB offering in October 2021. Exact date of the offering period for this year’s RDB hasn’t been disclosed yet.
