FMIC to ask gov’t to issue RTBs, do debt swap in Q1 ’12

January 10, 2012 11:24 pm 

MANILA, Jan. 10 – An investment firm plans to ask the government to issue retail bonds and do bond swap in the first quarter of this year, given the demand and high liquidity situation in the country.

First Metro Investment Corporation (FMIC) president Roberto Juanchito Dispo told reporters on Tuesday they will propose these activities in the first three months of the year to take hold of the positive situation in the domestic financial market.

“There are maturities, there’s a clear market, and there is no significant/major fund raising activity (planned for the quarter),” he said.

FMIC, the investment bank arm of Metrobank, has been tapped in previous RTB issuance and bond exchange of the government.

Dispo said they will suggest the issuance of 10-year and 15-year retail treasury bonds (RTBs) and the exchange of shorter-dated notes for 10-, 20- and 25-year notes.

He declined to say the possible volume of RTBs issuance but debt swap volume can be at least P50 billion.

He said the issuance of 10-year bonds is needed to provide additional supply as volume of this tenor has been dwindling while the 20- and 25-year bonds will stretch maturities of government debt.

The government last issued 10- and 15-year RTBs in October 2011, wherein it sold a total of P110 billion worth of this debt instrument.

RTBs are named as such because it is intended for small investors as the minimum placement is P5,000.

Earlier, National Treasurer Roberto Tan said they are considering to issue RTBs twice this year. (PNA)



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