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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 as the issuer and and DBP as the selling agent. However, there may be market risks due to changes in the interest 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.

GS are listed on the Bloomberg platform and can be redeemed prior to maturity at prevailing market rates, subject to availability of buyer. Pero and Dollar Denominated GS are not insured by the Philippine Deposit Insurance Company (PDIC).

Peso Denominated Securities

    • Treasury Bills (TBills), Fixed Rate Treasury Notes (FXTNs) and Retail Treasury Bonds (RTB)
    • Minimum investment – Php100,000.00
    • Can be used as collateral for loan
    • Interest rates subject to prevailing market rate
    • Subject to the following fees:

For securities with remaining term of 365 or lower:

      • Broker’s fee = Face Value x 0.10% x Term/360 or PHP200.00 whichever is higher
      • Trading platform fee = Face Value x 0.0025% x Term/365

    For securities with remaining term of more than a year:

      • Broker’s fee = Face Value x 0.10% or PHP200.00 whichever is higher
      • Trading platform fee = Face Value x 0.0025%

*Fees stated above are subject to change without prior notice

a. Treasury Bills (TBills)

        • Tenor – 1 year and below
        • Issued at a discount; subject to 20% final tax

b. Fixed Rate Treasury Notes (FXTNs)

        • 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)

c. Retail Treasury Bonds (RTB)

        • Tenor – 2 to 24 years remaining tenor
        • Interest – payable quarterly throughout the tenor if held until maturity; subject to 20% final tax (except for Tax Exempt Institutions)

US Dollar Denominated Securities

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
        • For securities with remaining term of 365 or lower:
          • Broker’s fee = Face Value x 0.10% x Term/360 or PHP200.00 whichever is higher
          • Trading platform fee = Face Value x 0.0025% x Term/365
          • Clearstream safekeeping fee of 0.8bps per annum based on account balance
        • For securities with remaining term of more than a year:
          • Broker’s fee = Face Value x 0.10% or Php200.00 whichever is higher
          • Trading platform fee = Face Value x 0.0025%
          • Clearstream safekeeping fee of 0.8bps per annum based on account balance
            *Fees stated above are subject to change without prior notice

Disclaimer:

Market prices of Government Securities/Corporate Bonds are subject to fluctuations. Transactions may involve variety of significant risks to be understood and acknowledged by the client. Investors in these securities should also understand that the bank is acting as a broker and not as a financial adviser or fiduciary thus should seek financial advice and not rely solely on the information published on this website.

Would you like to inquire further about these products and services? Please contact the following SEC Licensed Fixed Income Market Salesmen:

Lorena Go-Espanol
SEC C.R. No. 02-2009-03328
Tel.: (+632) 8893-5749
(+632) 8818-9511 loc. 3822
Email: lgespanol@dbp.ph

Melea M. Maldia
SEC C.R. No 02-2013-08586
Tel.: (+632) 8815-1518
(+632) 8818-9511 loc. 3825
Email: mmmaldia@dbp.ph

Maryrose G. Espino
SEC C.R. No. 02-2011-06336
Tel.: (+632) 8815-1518
(+632) 8818-9511 loc. 3820
Email: mgespino@dbp.ph

Alyssa Joy M. Navarro
SEC C.R. No. 02-2017-12684
Tel.:  (+632) 8817-6519
(+632) 8818-9511 loc. 2834
Email: ajmnavarro@dbp.ph

Laraine Anne F. Arandia
SEC C.R. No. 02-2016-11832
Tel. : (+632) 8815-1518
(+632) 8818-9511 loc. 2831
Email:laearandia@dbp.ph

Mayvelyn P. Ver
SEC C.R. No. 02-2019-13516
Tel.:  (+632) 8815-1518
(+632) 8818-9511 loc. 2831
Email: mpver@dbp.ph
Fax Number: (632) 8818-5143

“The Development Bank of the Philippines (DBP) is regulated by the Bangko Sentral ng Pilipinas (BSP). For inquiries and complaints, please visit your branch of account, email customerservice@dbp.ph or contact the BSP Financial Consumer Protection Department at (02)8708-7087, BSP webchat – https://www.bsp.gov.ph/: SMS:-021582277 (for Globe subscribers only); BSP Facebook https://www.facebook.com/BangkoSentralngPilipinas.

 

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