Overseas Filipinos, particularly those based in the United Arab Emirates (UAE), are poised to tap into investment opportunities with the second issuance of Retail Dollar Bonds (RDBs) by the Bureau of the Treasury (BTr).
During a financial litercay session on the national government’s retail instruments on Wednesday, National Treasurer Rosalia De Leon noted that overseas Filipino workers (OFWs) in the UAE are “oozing with liquidity,” urging them to consider investing in RDBs.
“We’re delighted to see the growing trend in how our individual investors, especially Filipinos overseas, have been putting their hard-earned income into our Retail Dollar Bonds to support our funding requirements,” De Leon said in her keynote address.
“Marami na pong makakapag-testify how convenient and easy to be able to access the different channels for you to be able to invest,” she added.
RDBs are US Dollar-denominated Government Securities issued by the Philippines via the Bureau of the Treasury. These securities offer benefits including sovereign backing, regular interest payments, convenience, affordability, relatively higher yield, and contribute to nation-building efforts.
Investors can get started with a minimum placement of $200, guaranteeing a full coupon payment without tax. Placement methods are flexible, allowing investors to choose between straight US dollar or peso clear.
Multiple avenues are also available for investment. Investors may opt for over-the-counter transactions by visiting authorized selling bank agents. Alternatively, they can use the BTr online ordering facility through treasury.gov.ph. For those inclined towards app-based channels, the Land Bank Mobile Banking App, Overseas Filipino (OF) Bank Mobile Banking App, or Bonds.ph are accessible options.
Investing in RDBs for OFWs involves just three easy steps. First, open a US dollar account, available through Land Bank or OF Bank. Second, fund the US dollar account via traditional bank transfer, digital fund transfer, or remittance agent partners. Finally, purchase the RDBs through the Land Bank or OF Bank mobile apps.
In a question asked by The Filipino Times (TFT), Randolph Montesa, President and CEO of the OF Bank, assured OFWs that they would receive assistance in case they encounter any challenges with the program.
“Marami po tayong mga katuwang, meron po tayong video para po ma-guide tayo sa step by step. Madali lang naman po siya pero kung talagang may challenge, pwede po kayong sumangguni sa amin, sa Land bank or sa OF Bank,” Montesa told TFT.
“Meron po tayong contact details doon na pwede nilang kontakin. Meron pong live person na pwedeng tumulong sa inyo. Nakikipagugnayan din po kami sa Consulate office para ma-train po namin ang ating mga kababayan dito, yung ating mga staff and officers dito, para makatulong at makapag-explain,” he added.
Montesa also reiterated the importance of preparing all the necessary requirements, advising on proper lighting for the selfie requirement and a flat surface for scanning IDs.
For his part, Gonzalo Bongolan, Senior Vice President and Head IBG of Land Bank, highlighted that RDBs are now more accessible for OFWs.
“Bukod sa magandang investment ito, maganda ang yield, at nakakatulong ka sa ating bayan. Natutulungan ang pamahalaan, makakagawa ng magandang proyekto at yung proyekto dadagdag sa productive capacity ng buong bansa, and if the productive capacity grows then income grows,” Bongolan explained during his presentation.
While the exact offer period has not been confirmed, De Leon urged OFWs to open an account and fund it as early as now.
“We’re targeting within the month, pero syempre we cannot pin down the exact date. Bago kami mag-launch mag-aauction kami, kasi diba yun naman ang process natin para ma-determine kung anong magiging coupon. So pag nag-auction kami, we will have already our launch, una sa Manila and then simultaneous na yun. We are also going to conduct webinars and mga briefings,” De Leon revealed.
“One of the things that we’re able to also secure from the Bangko Sentral is that wala na itong maintaining balance. So this early palang, mag-open na tayo ng account sa OF Bank, sa Land Bank, tapos pondohan na. Para pag dumating na po, nag-launch na po kami, let’s say mga last week of September, sabihin na po natin September 26, pwede niyo ng gamitin yung pinondo niyo para bumili ng RDB,” she concluded.
