Dollar Bonds Now Available For Small Investors
Small investors can now invest in the Philippines’ first-ever onshore retail dollar bond (RDBs) offering, as this income opportunity is a “win-win proposition” that will promote financial inclusion while raising funds for the country’s economic investments and comprehensive effort to defeat the pandemic.
Photo Insert: The digital innovations include the Bonds.PH, the mobile applications of the Overseas Filipino Bank (OFBank) and Land Bank of the Philippines (Landbank), and the Treasury's online ordering facility.
Finance Secretary Carlos Dominguez said the newly launched RDBs of the Bureau of the Treasury (BTr) and the digital innovations put in place to make investing in them easier and more convenient will allow Filipinos, especially overseas Filipino workers (OFWs), to buy government securities without having to pay out “huge commissions to brokers and traders.”
These digital innovations include the Bonds.PH, the mobile applications of the Overseas Filipino Bank (OFBank) and Land Bank of the Philippines (Landbank), and the Treasury's online ordering facility.
Bond offerings such as the RDBs will also support the development of the domestic capital markets, Dominguez said.
“The retail dollar bonds will offer our small investors an outlet for diversifying their investment portfolios. They do not need to keep their dollar holdings in deposit accounts that pay minimal interest. With a minimum investment of just 300 US dollars or about 15,000 pesos, small investors can now grow their US (United States) dollar savings,” Dominguez said at the virtual launching of the RDBs.
He said shifting the buying and selling of government-issued bonds online has made investing “seamless and nearly friction-free.”
To enable investors to learn and understand the fundraising and debt management activities of the national government, BTr also launched a mobile application for the public to access information about them.
“I encourage our people to invest their savings in dollar bonds. This is a win-win proposition. Retail dollar bonds provide a safe investment and income opportunity. Buying them will help raise funds for our economic investments and the nation’s comprehensive effort to defeat the pandemic,” Dominguez said.