The Philippine government is preparing to raise at least P30 billion from a new retail Treasury bond (RTB) offering as it looks to tap individual investors while keeping this year’s borrowing costs and funding needs in check.
The Bureau of the Treasury (BTr) is set to offer its 32nd tranche of RTBs, with the government targeting a significantly smaller amount than the P507.16 billion raised from its previous RTB sale in 2025. National Treasurer Sharon Almanza said the government does not need to raise its usual volume because it still has other financing options available for the remainder of the year.
The new RTBs will be peso-denominated securities with a 2.5-year maturity. The offering period is scheduled to run from September 29 to October 7, according to the BTr’s notice of offering.
The smaller issue comes as domestic borrowing costs remain elevated. Almanza said the Treasury is looking at the overall funding mix rather than relying on a large RTB sale, particularly as interest rates and inflation remain important considerations for the government’s financing program.
The Treasury is also considering returning to the retail dollar bond market. The government last issued retail dollar bonds in 2023, raising $1.26 billion, above its $1-billion target. Officials said another dollar-denominated offering could provide an alternative source of funding if market conditions are favorable.
Inflation is among the factors being closely watched before the RTB sale. Treasury officials cited potential price pressures from the southwest monsoon, El Niño and higher oil prices, which could affect market yields and borrowing costs.
The government plans to borrow about P2.73 trillion in 2026, with roughly P1.92 trillion coming from domestic sources and P815.51 billion from external borrowing. The RTB proceeds will be used to support the government’s general financing requirements.
The latest offering also marks the 25th year of the RTB program, which was created to give individual investors access to government securities. Treasury officials have emphasized that retail investors do not need a large amount of money to participate in the program.
The smaller planned RTB issue reflects the government’s broader effort to balance funding requirements against borrowing costs. With domestic rates still sensitive to inflation and monetary policy expectations, the final terms of the offering will be closely watched by investors as the September 29 launch approaches.
