Filipinos urged to invest in second tranche of retail dollar bonds for financial inclusion

Finance Secretary Benjamin E. Diokno encouraged Filipinos around the world to invest in the Philippines’ second tranche of the Retail Dollar Bond (RDB 2) on September 27, 2023 to bolster financial inclusion.

“I highly encourage all of you to invest in RDB 2. This investment product is a big leap towards achieving financial inclusion for our citizens, especially our foreign exchange-earning Overseas Filipino Workers,” he said during the launch of the RDB 2.

The national government issues RDBs, which are fixed-income instruments, to provide Filipinos with low-risk, affordable and convenient investments to diversify their portfolios.

According to the Finance Secretary, the RDB 2 is a potent tool for promoting financial inclusion and was designed to attract more Filipinos to invest in RDBs.

The features include lowered the minimum investment amount from US$ 300 to just US$ 200, and in multiples of US$100 thereafter; a tenor of 5.5 years and a gross interest rate of 5.750% per annum, payable every quarter until its maturity in 2029; guaranteed final withholding tax on interest for RDBs by the Philippine government; and convenient payment channels through traditional and online platforms (i.e. over-the-counter subscription through authorized Selling Agents, Bonds.PH app, LANDBANK mobile banking app, Overseas Filipino Bank mobile banking app, and the Treasury’s Online Ordering Facility via

Apart from immersing Filipinos in the financial system, the RDB 2 allows investors to participate in the effort of nation building.

By investing in government bonds, Filipinos can help finance the government’s priority infrastructure projects and support the Philippine economy’s high-growth trajectory.

“With your investments, we manifest a better life for our families, communities, and the nation at large,” Secretary Diokno said.

The government has been conducting financial literacy sessions since January to ensure the success of the RDB offerings. Secretary Diokno said that they have hosted these sessions with over 700 Overseas Filipinos across Europe, Japan, America, Canada, and the Middle East.

“These sessions aim to strengthen our overseas retail investor base and build awareness for the Republic’s upcoming offering,” he said.

Prior to the RDB 2, the Philippines had already successfully launched its maiden Retail Onshore Dollar Bond and raised a total of US$ 1.6 billion, which was almost four times the initial target of US$ 400 million US dollars, according to the Finance Secretary.

The RDB 2 will be offered by the Bureau of the Treasury (BTr) from September 27 to October 6, 2023, with the issue date scheduled on October 11, 2023.