MANILA, Philippines, November 25, 2019 – The Bureau of the Treasury (BTr) is launching the offering of at least P3-billion Premyo Bonds today in a bid to raise funds for housing, education, healthcare and social services.
Individuals, cooperatives, retirement funds and provident funds may invest in these securities which are essentially risk free as a direct obligation of the Republic; furthermore, the Premyo Bonds pay interest every quarter; only require a minimum investment of ₱500.00; provide a relatively higher yield than time deposits; and can use, for investors’ settlement accounts, existing CASA.
The bonds will have a tenor of one year and an interest rate of 3.000% per annum. The Joint Issue Managers are: Development Bank of the Philippines, Land Bank of the Philippines, BDO Capital & Investment Corporation, China Bank Capital Corporation and First Metro Investment Corporation. These institutions will also act as the selling agents from which interested investors may order their Premyo Bonds.
Public offer period will run from today until December 13, while the issue date is targeted on December 18, 2019. Maturity date will be one year from the issue date.
Cash Rewards
On top of the quarterly interest payment, bondholders will also get a chance to win P1 million via raffle draw every quarter as well as P100,000 and P20,000 cash rewards.
There will be a “Cash Reward Ratio” which will then be used to determine the Cash Reward Pool and that willl determine how much a bondholder can win as a cash reward.
After deducting the Cash Reward Ratio from the Gross Interest rate, the Final Interest Rate will determine how much interest earnings a bondholder will get regularly. Through the Premyo Bonds, investors have 2 ways to earn – one through regular interest payments and the other via the chance to get Cash Rewards.
Joining the Premyo Bonds Cash Reward is simple. Every ₱500 investment is equivalent to one Bond Unit, which will serve as one entry in the quarterly raffle draw. The bond unit is valid until the final raffle draw date, meaning it does not expire after each quarterly raffle draw.
Non Cash Rewards
The winner of the P1 million cash reward in the first, second and third cash rewards draw will receive a non cash reward, which might be a condominium unit or a house and lot from Hotel 101, Lessandra by Vista Land, or Megaworld. A further benefit is that the non-cash reward will be net of all applicable taxes, fees and charges.
For more information on the Premyo Bonds, interested investors may follow the Bureau of the Treasury on social media at Facebook at fb.com/TreasuryPH and on Twitter at @TreasuryPH or visit any of the issuing banks to avail of the securities.
Aside from the financial literacy sessions for overseas Filipinos in Washington, Dubai, Abu Dhabi, and Singapore, the BTr will be holding roadshows on the issuance of Premyo Bonds in key cities throughout the Philippines. Roadshow schedules are as follows:
- November 25, 4:00 p.m., Bulwagan ng Diwang Pilipino, Penthouse, Development Bank of the Philippines Sen. Gil Puyat Avenue corner Makati Avenue, Makati City
- November 26, 4:00 p.m., Baguio Country Club, Country Club Road, Baguio City
- November 26, 4:30 p.m., L’Fisher Hotel, Bacolod 14 Lacson St, Bacolod,
- November 26, 4:30 p.m., Pontefino Hotel, Pastor Village, Batangas City
- November 27, 4:30 p.m., Marco Polo Plaza Cebu, Hills, Cebu Veterans Dr, Cebu City
- November 27, 4:30 p.m., Marco Polo Hotel, Davao C. M. Recto, Poblacion District, Davao City
- November 27, 4:30 p.m., Iloilo Convention Center, Megaworld Blvd, Mandurriao, Iloilo City
• November 28, 4:00 p.m., Seda Centrio, Claro M. Recto Avenue, Corrales Ave., CDO
