- Retail Dollar Bonds
1.375% (5 years), 2.250% (10 years)
*In integral multiples of USD100 thereafter
Philippine Government through the Bureau of the Treasury (BTr)
September 15, 2021 to October 1, 2021 or any earlier date as determined by the BTr
October 8, 2021
5-Year RDB: October 8, 2026
10-Year RDBB: October 8, 2031
Minimum investment of USD 300
Essentially risk-free as the RDBs are direct obligations of the Republic.
Yields higher than time deposits.
Pays interest every quarter.
It can be bought and sold on any banking day, subject to prevailing market rates.
1. Visit any BPI branch during the Offer Period and request for the forms to invest in the RDBs. Please bring a photocopy of one (1) valid government-issued I.D.
2. Fill out all the details and submit the necessary documentary requirements.
3. Give the cash to be invested to the branch personnel. If it will be debited from your account, please make sure your account is funded.
RDBs are medium- to long-term debt securities issued by the Republic of the Philippines (“ROP” or “the Republic”) through the Bureau of the Treasury (“BTr”). The RDBs are part of the government’s savings mobilization program designed to make government securities available to retail investors; hence, the name Retail Onshore Dollar Bonds. RDBs are fixed-income securities that pay a fixed interest rate per annum over a specified period of time with a promise to return the principal at the end of the term.
Investing in RDBs is considered safe and low-risk because they are a direct obligation of the Philippine government and thus backed by the entire financial capacity of the Republic. As an investment security, RDBs have inherent risks like market or price risk, foreign exchange risk, default risk and sovereign risk, however, these risks are minimized due to the financial backing of the Republic. Thus, it is highly recommended that the investor should understand all the risks involved before investing in RDBs.
Depending on the prevailing market rates at the time of the sale, there is a possibility that the resulting net proceeds may be higher or lower than the principal investment. Should the investor decide to convert their USD to PHP, there will be exposure to foreign exchange risk as well.
No, since the issuer is the NG itself, thus it can’t guarantee itself. The RDBs are direct and unconditional obligations of the NG, which rank in equal footing with all other obligations of the NG. The interest payments and eventual return of the principal is backed by the entire financial capacity of the Republic to pay off all its debt.
Yes, you can, but for convenience, we recommend that you invest under a single amount (in this case, USD 300,000.00) since the RDBs may be sold partially in the secondary market. Breaking your investments in multiple placements will require you to accomplish several sets of documents which will take additional time and effort.
Generally, the higher the risk, the higher the return. Corporations, both public and private, need to pay a higher interest rate due to the added credit and default risk. Sovereign issues, such as the RDBs, are generally considered default risk-free as the government has the taxing power that will allow it to generate the funds to pay off its debt. Given that, government securities are generally priced at lower rates than corporate issuances.
For more information, visit the Bureau of Treasury’s website. You may also contact BPI Capital through the following numbers:
• (02) 8246-5166
• (02) 8246-6154
• (02) 8246-5167
• (02) 8246-5168
• (02) 8246-5170
• (02) 8246-5169