Sun, 16 Aug 2020

Premyo bonds aimed at raising financial literacy

Philippine Information Agency
07 Dec 2019, 00:38 GMT+10

DAVAO CITY (PIA) - The Philippine Government through the Bureau of Treasury has issued a 1-year Peso-denominated Premyo Bonds Para Sa Bayan ("Premyo Bonds") in a minimum aggregate nominal principal amount of Php 3 billion. Individuals, not corporations, may invest on these Premyo Bonds.

Eligible investors started investing on Premyo Bonds last November 22 and it will run until December 13, 2019, only to be purchased at these selling agents: Banco de Oro (BDO) BDO Capital and Investment Corporation, Chinabank Corporation, China Bank Capital Corporation, Development Bank of the Philippines, First Metro Investment Corporation, and Land Bank of the Philippines.

The Bureau of Treasury explained that this is the first time offered for a particular eligible investors which includes: Individuals, Trust Entities (excludes UITFs, Mutual Funds and Collective Investment Scheme), Employee Retirement Funds, Provident Funds, Cooperatives, and Associations ( i.e. Non-stock and loans associations and employee associations).

"This is particularly targeted to raise financial literacy amongst individuals because recent events showed that many individuals in Southern Mindanao were deceived by fraudulent investment schemes instead of trusting their investments on legitimate financial institutions and products", said John Paul Tan of the Bureau of Treasury XI.

Investors may buy Premyo Bonds from as low as Php500. Every PHP500.00 placement is equivalent to one Premyo Bonds unit. Each Premyo Bonds unit entitles the Bondholder to one (1) electronic Rewards Number ("e-RN").

There is no maximum investment amount. However, only 20,000 Premyo Bonds units (or an equivalent investment amount of PHP10 million) shall be eligible, per Bondholder, for inclusion in the Cash Rewards Structure, to be monitored by the Selling Agents.

The Bureau of Treasury explained that interest on the Premyo Bonds, to be calculated on a 30/360-day basis, will be paid quarterly in arrears on the last day of each 3-month Interest Period. Each Premyo Bonds will cease to bear interest after the Maturity Date. If the Interest Payment Date is not a Business Day, interest will be paid on the next succeeding Business Day, without adjustment in the amount of interest to be paid.

Aside from the interest, investors have been looking forward to the Cash and Non-Cash rewards to be drawn thru raffle every quarter.

One winner of Php1 million is set per quarter, while 10 winners will get Php100,000 quarterly, and 50 winners will be drawn out to get P20,000 each per quarter.

The winner of the Tier 1 Cash Rewards may also receive a Non-Cash reward from participating entities. Some of the non-cash rewards include a condominium unit and a house and lot.

The Bureau of Treasury in Davao Region has offered exclusive briefing for every national government agency to disseminate information to eligible investors. (PIA/Frances Mae Macapagat)

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