RTBs are medium- to long-term debt securities issued by the Republic of the Philippines (“ROP” or

“the Republic”) through the Bureau of the Treasury (“BTr”). The RTBs are part of the government’s
savings mobilization program designed to make government securities available to retail investors;
hence, the name Retail Treasury Bonds. RTBs are fixed-income securities that pay a fixed interest
rate per annum over a specified period of time with a promise to return the principal at the end of
the term.

a treasury fund is not a type of government bond, but it invests in government bonds.

Benefits to Investors:

Sovereign Backing. RTBs are peso-denominated investment securities issued by the Republic of the
Philippines. Investments in RTBs are direct obligations of the Republic and are thus considered
Investment grade.

Affordable. RTBs are affordable investments with a minimum placement amount of PHP5,000.

Frequent Interest Payments. RTBs pay interest quarterly.

Low-risk investment: Essentially risk-free as the bond is a direct obligation of the Republic.

Relatively Higher Yield. RTBs offer relatively higher yields compared to savings and deposit
instruments

Convenient. RTBs can be purchased from any of the Selling Agent banks. Investors can even use
their existing savings account as the settlement account for the placement of RTBs and receipt of
interest

Negotiable and Transferrable. RTBs have an active secondary market where investors can buy and
sell government securities

During the Public Offer Period, RTBs will be made available by the Bureau of the Treasury
(“BTr”) through the Selling Agents to the following:
Individuals, Corporations, Financial Institutions, Cooperatives, Retirement Funds, Provident Funds,
and other Institutional Investors.

If coupon rate < YTM èè bond price < maturity value. The bond is trading at a discount.

C=c *M
n