• Thu. May 26th, 2022

£ 10.2m raised through bond issuance via mobile banking app

The government’s official digital financial institution, Overseas Filipino Bank (OFBank) has raised a total of $ 203,200 or 10.285 million pesos from the Treasury Office’s recent Retail Dollar Bonds (RDB) offering.

OFBank provided Filipino Overseas Workers (OFW), including their family members and other Filipinos in the country, with an OFBank account active during the selling period, a way to invest in RDBs through the bond buying function of its mobile banking application (MBA). This gave them access to a fixed income opportunity, allowing their investments to earn more than traditional savings.

“Investing in government securities is now easier anytime, anywhere with the OFBank MBA. Our account holders do not need to go out and queue and complete various documents at a physical bank. Through our digital shopping platform, we are also seeing increased demand for our kababayes abroad to increase their income and expand their investment portfolio, ”said Leila C. Martin, President and CEO of OFBank.

Previously, RDBs were only accessible to institutional investors. Its recent offering has opened the door for retail investors, especially its affordable initial investment of $ 300 and top up in $ 100 increments for more income over time. RDBs also have attractive interest rates, with 1.375% for a five-year term and 2.25% for a 10-year term.

Interest payments will be credited to their account every three months and automatically converted to Philippine Peso.

OFBank President and LandBank Chief Executive Officer Cecilia C. Borromeo explained that funds raised through these bonds will help finance priority government development projects including roads, schools, dams. and other infrastructure.

“Investing in RDB helps accelerate the country’s recovery and a sustained growth trajectory,” she added.

Thanks to the OFBank MBA, which can be easily downloaded through Google Play or the App Store, Filipinos around the world have had the opportunity to avail themselves of previously intimidating or inaccessible investment instruments such as bonds.

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