Finance Secretary Carlos Dominguez III is urging Filipinos to support the government’s domestic bond offerings as such secure investments will help the Duterte administration raise funds to bridge the yawning budget deficit brought about by the coronavirus emergency and prepare the economy for a quick and strong recovery from this public health crisis.

Dominguez said the success of one such bond issue—the small investor-targeted Premyo Bonds—has accomplished several goals, which include improving the ratio of the government’s borrowing mix in favor of domestic sources; providing small savers a safe investment opportunity while protecting them from spurious business schemes and onerous lending practices; and expanding financial inclusion among Filipinos.

“I would like to congratulate the Bureau of the Treasury (BTr) for conceptualizing and successfully executing the Premyo Bonds. I would like to thank the generosity of our sponsors namely Lessandra Vista Land and PRO-FRIENDS Housing for the non-cash rewards. The Premyo Bond has not only exceeded expectations in terms of subscription but, more importantly, in promoting financial inclusion. The Premyo Bonds have encouraged thousands of new small investors to participate in this underdeveloped market,” Dominguez said during the first two major Premyo Bonds raffle draws held Thursday afternoon at the Marble Hall of the BTr’s main office at the Ayuntamiento de Manila in Intramuros.

Dominguez, assisted by National Treasurer Rosalia De Leon, drew the winning electronic rewards numbers for the major prizes of the Premyo Bonds consolidated raffle draws.

The rewards include P20,000 each for 200 winners, P100,000 each for 30 winners, and a house and lot for each of the 2 major winners of P1 million each.

The BTr increased the rewards pool from P3 million to P4.5 million after the overwhelming reception last year for the Premyo Bonds, which was offered last Nov. 25 up to Dec. 13 for as low as P500 per unit.

From the original target of P3 billion, the BTr was able to raise P4.961 billion from the one-year bonds, which carry a coupon rate of 3 percent per annum paid out per quarter, on top of having a chance to win cash and other rewards.

These rewards are net of all applicable taxes, fees and charges.

The draw for last year’s offering was originally scheduled in March this year, but it had to be postponed because of the Luzon-wide enhanced community quarantine (ECQ) that was imposed to contain the spread of the coronavirus disease 2019 (COVID-19).

The draws for the first and second quarters have been consolidated in the Thursday event.

“Investments in government bonds such as this one will help us cover our deficits brought about by the (COVID-19) emergency and prepare our economy for recovery. Because of the fiscal discipline we have exercised over the past few years, the Philippine government found financial strength in the midst of a global health, and now economic, crisis,” Dominguez said.

The COVID-19 pandemic, which has devastated economies across the globe, has also taken its toll on the country’s budget as the government had to scale up its expenditures to strengthen the public health system and provide relief to the vulnerable sectors hardest hit by the contagion, Dominguez said.

He urged the winners of the Premyo Bonds raffle to consider using their rewards to start small businesses or reinvest in government bonds to help the government fund its COVID-19 response efforts and create new jobs to replace those that were lost from the economic fallout triggered by the pandemic.

“Investments that will lead to employment opportunities will be the key drivers in our economic recovery,” Dominguez said. “Let me assure you that this government is doing its best and its utmost to protect our people’s health while at the same time preparing our economy for a strong rebound.”

Close to 20,000 new investors in the Premyo Bonds account for 77.56 percent or P3.85 billion of the amount raised from the offering, while 2,883 existing accounts make up 22.44 percent or P1.11 billion of the bond sale.

The bond sale, dubbed “Invest Pa More, Panalo Pa More: Premyo Bonds Para Sa Bayan,” received wide participation among small savers and overseas Filipinos when it was launched last year.

Proceeds from Premyo Bonds, which are now part of the national Government’s proactive financing strategy, will help fund the country’s health and educational programs, among other priority initiatives.

The Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LandBank) were the Joint Lead Issue Managers for the first Premyo Bonds offering, with BDO Capital & Investment Corp. (BDO-CIC), China Bank Capital Corp. (CBCC), and First Metro Investment Corp. (FMIC) as Joint Issue Managers.

The next Premyo Bond draws for this year will be held in September and December.

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