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Government Securities

Government Securities (GS) are unconditional obligations of the Republic of the Philippines. These are relatively free from credit risk because the principal and interest are guaranteed by the National Government, backed by the full taxing power of the sovereignty. However, there may be market risks due to changes in the interst rates.

The Philippine Government issues both Peso and US Dollar denominated securities. There are two kinds of Peso Government Securities (GS): (1) Treasury Bills and (2) Treasury Bonds. Treasury Bills are obligations with maturity of one year or less, typically issued at a discount to the maturity value. Treasury Bonds are obligations with maturities ranging from 2 years to 25 years, typically issued at par with periodic coupon payments to be made up to final maturity. Some bonds may be issued without coupons and these are known as zero coupon bonds.

As for the dollar denominated GS, it has tenors of up to 25 years. Interest rates are paid semi-annually based on a fixed coupon rate.

Peso

      a. Treasury Bills (TBills)

      • Minimum investment – PhP100,000.00
      • Tenor – 1 year and below
      • Issued at a discount; subject to 20% final tax
      • Can be redeemed before maturity at prevailing market rates, subject to availability of buyer
      • GS are relatively risk-free
      • Can be used as collateral for loan

      b. Fixed Rate Treasury Notes (FXTNs)

      • Minimum investment – PhP100,000.00
      • Tenor – 2 to 23 years remaining tenor
      • Interest – payable semi-annually throughout the tenor if held until maturity; subject to 20% final tax (except for Tax Exempt Institutions)
      • Can be redeemed before maturity at prevailing market rates, subject to availability of buyer
      • GS are relatively risk-free
      • Can be used as collateral for loan

      c. Retail Treasury Bonds (RTB)

      • Minimum investment – Php100,000.00
      • Tenor – 2 to 24 years remaining tenor
      • Interest – payable quarterly througout the tenor if held until maturity; subject to 20% final tax (except for Tax Exempt Institutions)
      • Can be redeemed before maturity at prevailing market rates, subject to availability of buyer
      • GS are relatively risk-free
      • Can be used as collateral for loan

    US Dollar

      Republic of the Philippines (ROP) Bond

      • Minimum investment – US$100,000.00
      • Tenor – 1 to 35 years remaining tenor
      • Interest – payable semi-annually throughout the tenor if held until maturity
      • Tax – Non-taxable


    To know more about our products, you may get in touch with the following Treasury Marketing Officers/Staff at Tel Nos. (02) 815-1518; (02) 818-9511 locals 3822 and 3825:

    Lorena Go-Espanol – Sales Officer
    Melea M. Maldia – Sales Officer
    Maryrose G. Espino – Sales Officer
    Alyssa Joy M. Navarro – Sales Officer
    Laraine Anne F. Arandia – Sales Officer

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