Both investors and the national government will benefit from the “Premyo bonds para sa bayan (Prize bonds for the nation)” launched by the Bureau of Treasury (BTr).

In a press conference, National Treasurer Rosalia de Leon said Premyo bonds are designed to entice more small Filipino investors to save money for as low as PHP500, lower than the usual PHP5,000 minimum denomination for retail treasury bonds.

De Leon said the PHP500 per individual bond can be bought through five selling agent banks Development Bank of the Philippines (DBP), Landbank of the Philippines, First Metro Investment Corporation, BDO, and China Bank, and Metrobank.

“Ang minimum denomination ay PHP500 so kayang-kaya po ng ating mga malilit na mga Pilipino at ang ating mga individual to be able to save dito sa Premyo Bonds (The minimum denomination is PHP500 so Filipinos with meager earnings can invest in Premyo Bonds),” she said in a weekly economic briefing at Palace.

“So through our facilities, mas mapapadali, mas convenient po ang pago-order ng Premyo Bonds (ordering Premyo Bonds will be easier and more convenient),” she added.

The bond carries an interest rate of 3 percent per annum that will be paid quarterly and subject to a 20 percent final withholding tax, DBP senior manager Jose Angelo Abad said.

National Deputy Treasurer Erwin Sta. Ana said the Premyo bonds, which have “the sovereign backing of the Republic,” are “credit risk-free.”

“Sa regular na natatanggap natin sa bangko sa ating mga savings account na virtually, halos wala na tayong natatanggap (In our savings account in regular banks, virtually, we don’t get earnings). Eto ho (This bond) will present a strong case because it gives a higher yield for the investors,” he said.

Abad said a bondholder can have a maximum of 20,000 Premyo Bond units worth PHP10 million.

The buying of bonds will run from November 25 to December 13, he added.

Sta. Ana said the BTr is targeting raising PHP3 billion to maintain the national government’s sustainable social services for the benefit of all Filipinos.

“So ito po ay gagamitin sa pang-pondo sa pangangailangan po natin sa ating national budget, including educational requirements, housing, health care at iba pang mga social services (The government will use [the Premyo Bonds’ proceeds] in support of the national budget for the educational requirements, health care, and other social services),” he said.

“So hindi lang po para pang personal yung pagi-invest (So the investment is not only for personal gain), but rather also, you help in nation-building by supporting this program of the government,” Sta. Ana added.

Cash, non-cash rewards await investors

LandBank first vice president Gonzalo Benjamin Bongolan said Filipinos can buy the bond through over-the-counter or online.

The DBP, LandBank, and Metrobank are selling the Premyo Bond through online payment, Bongolan noted.

He also reminded investors to keep their proof of payment as it will serve as an “evidence” that they invest in Premyo bonds.

On top of the quarterly interest payment, Sta. Ana revealed that investors would be given the chance to win up to PHP1 million in cash.

Sta. Ana said one investor will win PHP1 million, 10 winners will receive P100,000, and 50 winners will get PHP20,000 during the quarterly draw.

“Mare-receive ng buong-buo (They will receive it without any deductions),” he said.

Aside from cash prizes, investors can also win condominium units and house and lots from participating property developers Vista Land, Mega World Corporation, and DoubleDragon Properties Corporation, Sta. Ana said.

Abad said a bondholder with multiple Premyo Bond units may win multiple times.

“Each bond unit may win only once per quarterly raffle draw. And after every raffle draw, the bond unit does not expire or gets retired. It gets refreshed and gets carried over again on the next raffle draw,” Abad said.

“A bondholder may have multiple bond units and in turn, they will get multiple chances of winning,” he added. (PNA)