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Louise Maureen Simeon - The Philippine Star
April 26, 2025 | 12:00am
The Bureau of the Treasury has concluded the auction of peso-denominated 10-year FXTNs, which are medium to long-term investments that carry minimal risk and are originally issued with tenors of three to 25 years.
Bureau of the Treasury FB page
MANILA, Philippines — The government managed to borrow P300 billion from the domestic market via the maiden issuance of fixed-rate Treasury notes (FXTNs) that will finance priority programs of the administration.
The Bureau of the Treasury has concluded the auction of peso-denominated 10-year FXTNs, which are medium to long-term investments that carry minimal risk and are originally issued with tenors of three to 25 years.
With this, the Treasury raised a total of P300 billion since the offer period began last April 15.
The kickoff and rate-setting auction initially raised P135 billion on the back of robust investor demand, with total tenders reaching P197.305 billion for an oversubscription of 6.6 times the minimum issue size of P30 billion.
Coupon rate fetched at 6.375 percent.
The offer period raised an additional P165 billion within the first five days, with total bids amounting to P307.05 billion.
Having reached a substantial benchmark size of P300 billion, the Treasury shortened and closed the offer period on Wednesday, one day ahead of schedule.
Despite ongoing global economic uncertainties, national treasurer Sharon Almanza said the FXTN offering highlights the strength of the domestic fixed-income market and investor confidence in government securities as stable investment options.
She added that the issuance also reinforces the Treasury’s commitment to building an efficient domestic capital market while helping fund the government’s priority projects in the agriculture, infrastructure, education and health care sectors.
“Additionally, by establishing liquid benchmarks, the Treasury provided reference points for price discovery and trading in the secondary market, bolstering liquidity and facilitating more efficient capital mobilization,” Almanza said.
