What are Retail Dollar Bonds (RDBs)?
RDBs are USD-denominated investment products with terms of either 5 years or 10 years issued by the Philippine national government. RDBs pay a fixed interest rate per year with a guarantee to return the principal at the end of the term.
Why invest in the Retail Dollar Bond?
The RDB is a low-risk, affordable investment that allows you to grow your USD savings. It offers interest rates higher than a regular dollar time deposit. Investors get their principal back upon maturity in addition to earning stable income throughout the term.
How much to invest in Retail Dollar Bonds?
Minimum investment is USD300 (and USD100 thereafter)
Are there additional charges when you invest in RDBs thru FirstMetroSec?
No broker’s fee will be charged when you buy RDBs thru FirstMetroSec during the primary issuance.
When can I buy Retail Dollar Bonds?
Offer period is from September 15 to October 1, 2021, while Issue Date is October 8, 2021.
What are the interest rates for 5 years and 10 years?
Net interest rates are 1.375% p.a. for 5 years and 2.25% p.a. for 10 years
When do I get interest payments?
Quarterly, which will be automatically credited to your FirstMetroSec USD account.
Are interest payments subject to tax?
Tax is paid by the government so the investor will get the interest payment in full.
Who can invest in RDBs?
You can invest in RDBs if you have an individual USD account with FirstMetroSec. Click HERE to learn how.
Do I need a dollar bank account to invest in RDB?
No. You may nominate a PHP bank account when opening a FirstMetroSec dollar account. Should you decide to withdraw in the future, FirstMetroSec will convert your proceeds to PHP and deposit into your nominated PHP bank account. In order to get the proceeds in USD, a dollar bank account will be required.
How do I pay for RDBs?
The cleared/withdrawable funds in your FirstMetroSec USD account will be used to cover your order. You can fund your account in 3 ways:
- Online Pay Bills of Metrobank and BDO – free of charge, available to Metrobank and BDO online banking users with US$ accounts;
- Remittance or fund transfer to any of FirstMetroSec’s USD bank accounts (Metrobank, BDO or BPI)
- Peso conversion to US Dollars thru any Metrobank branch– if you don’t have USD, submit a Subscription Agreement. Click HERE to learn how.
Complete funding instructions HERE.
Can I pre-terminate/withdraw my bond investment?
Can I sell my bond investment?
Yes, you can sell it in the secondary market ANYTIME based on the prevailing market rate, subject to fees and taxes. Click HERE to learn how.
How do I order RDBs?
- Go to www.treasury.gov.ph.
- Look for the offered bond, scroll down and tick “Click to Order”.
- Accomplish the online ordering form.
- Select First Metro Securities Brokerage Corp. as your settlement bank.
- Click Continue.
- You will be redirected to the payment page of FirstMetroSec. Enter your FirstMetroSec username and password.
- Read and agree to the Notice of Offering, Authorization, and Investor’s Undertaking.
- Review the payment instruction and Confirm.
A transaction confirmation will be sent to your registered email address. You may order multiple times within the duration of the offer period.