Finance Sec. Carlos Dominguez III is urging Filipinos to support the government’s domestic bond offerings as such secure investments would help the Duterte administration raise funds to bridge the yawning budget deficit brought about by the coronavirus emergency and prepare the economy for a quick and strong recovery from this public health crisis.
Dominguez said the success of one such bond issue—the small investor-targeted Premyo Bonds—has accomplished several goals, which include improving the ratio of the government’s borrowing mix in favor of domestic sources; providing small savers a safe investment opportunity while protecting them from spurious business schemes and onerous lending practices; and expanding financial inclusion among Filipinos.
“I would like to congratulate the Bureau of the Treasury for conceptualizing and successfully executing the Premyo Bonds. I would like to thank the generosity of our sponsors namely Lessandra Vista Land and PRO-FRIENDS Housing for the non-cash rewards. The Premyo Bond has not only exceeded expectations in terms of subscription but, more importantly, in promoting financial inclusion. The Premyo Bonds have encouraged thousands of new small investors to participate in this underdeveloped market,” Dominguez said during the first two major Premyo Bonds raffle draws held at the Marble Hall of the BTr’s main office at the Ayuntamiento de Manila in Intramuros.
Dominguez, assisted by National Treasurer Rosalia De Leon, drew the winning electronic rewards numbers for the major prizes of the Premyo Bonds consolidated raffle draws.
The rewards include P20,000 each for 200 winners, P100,000 each for 30 winners, and a house and lot for each of the 2 major winners of P1 million each.
The BTr increased the rewards pool from P3 million to P4.5 million after the overwhelming reception last year for the Premyo Bonds, which was offered last Nov. 25 up to Dec. 13 for as low as P500 per unit.
From the original target of P3 billion, the BTr was able to raise P4.961 billion from the one-year bonds, which carry a coupon rate of three percent per annum paid out per quarter, on top of having a chance to win cash and other rewards.
These rewards are net of all applicable taxes, fees and charges.
The draw for last year’s offering was originally scheduled in March this year, but it had to be postponed because of the Luzon-wide enhanced community quarantine that was imposed to contain the spread of the coronavirus disease 2019.
The draws for the first and second quarters have been consolidated in the event.
The next Premyo Bond draws for this year are set for September and December.