The two new debt instruments to be launched by the Bureau of Treasury (BTr) are aimed at further expanding the market of Philippine government securities, both for the big investors and small savers.
 This was assured by a ranking Department of Finance (DoF) official in response to speculations that the countries securities only target rich investors, particularly the global bond market.
The official said both the retail trade bonds (RTBs) and bond exchanges can either be used as savings or for wholesale funding.
 In fact, the official said, both debt instruments are recommended to small investors as the spreads for RTBs and bond exchanges are much higher than banks’ .65 to 75 interests per annum.
 The source said the two new debt instruments were launched four years ago but it was recalled shortly due to global market’s poor condition.
“The RTBs and bond exchanges have been done in the past.
There are no firm indications yet on timing, volume, tenors, etc. They are still being studied,” the source explained to the Daily Tribune.
Under normal practice, global bonds have a minimum of five year tenor while maximum are 25 years.    
The official corrected common impressions that the new debt instruments are being launched to cater the rich Filipino market in different countries.
“RTBs provide small investors and savers access to government securities and are a regular source of wholesale funding.
Debt exchange provides for extension of our maturity profile and minimizes refinancing risks which are all part of our liability management,” the official explained further.                    
The two new debt instruments are eyed to be launched on the last quarter of 2012 or three months before the BTr launches the biggest global bond offering in its 115-year history.