The Philippine government is looking to raise at least $200 million (about P12.8 billion) through its third onshore dollar-denominated retail bond offering.

In a notice of offering issued on Friday, the Bureau of the Treasury (BTr) said the rate-setting auction for Retail Dollar Bond 3 (RDB 3) is scheduled for Nov. 19, when the coupon on the notes will be determined. The public offer period will run until Nov. 24 unless ended earlier, giving prospective investors a window to subscribe once the terms are set. Issuance is set for Nov. 27.

This will be the Philippines' third retail dollar bond offering to date. The government previously raised $1.59 billion from five- and 10-year bonds in September 2021, priced at 1.375% and 2.25%, respectively, and $1.26 billion from 5.5-year securities in October 2023 at 5.75% — a combined $2.85 billion that has established the retail dollar bond as a recurring instrument in the state's domestic funding toolkit.

National Treasurer Sharon P. Almanza earlier said the government was still eyeing a domestic RDB issuance this year, having already completed its 2026 external commercial borrowing program through two triple-tranche dollar bond issuances worth a combined $5.3 billion.

The RDB 3 will carry a minimum investment of $200 (about P12,800), with $100 increments thereafter. The notes will be sold through government securities eligible dealers and through online channels, including the BTr's online ordering facility, the mobile applications of Overseas Filipino Bank, Inc. and Land Bank of the Philippines, GCash's GBonds platform, and the Philippine Digital Asset Exchange, Inc. (PDAX) — a distribution footprint that now spans traditional dealer channels, e-wallets and a registered digital asset exchange.

"Filipinos should not need substantial wealth or a private banker to access dollar investments. With as little as $200, they can now invest in Philippine government dollar bonds directly through the PDAX App, diversify their savings, and earn regular dollar income," PDAX Founder and Chief Executive Officer Nichel Gaba said in a separate statement.

PDAX said the offering will allow retail investors to access dollar-yielding products. "Making investing accessible isn't just about lowering minimum investments. It's about removing the complexity that has traditionally kept ordinary Filipinos out of financial markets. That's what we're building at PDAX," Mr. Gaba added.

Demand could prove healthy "as bond investors locally and globally search for higher yielding investments for their excess dollar funds, especially bonds that are considered as safer havens," Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A trader said in a text message that appetite would hinge on the pricing of the notes. "Given the market environment, I see the government capable of reaching its target or even close to $500 million if the price is right," the trader added.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.659 trillion, or 5.4% of gross domestic product, for this year. Retail dollar bonds such as RDB 3 sit within that borrowing mix, broadening the state's funding base while tapping dollar savings held by individual investors.

The coming days offer clear markers: the Nov. 19 auction will fix the coupon on which the offering's appeal rests, and subscription levels through Nov. 24 will show whether retail demand lands closer to the $200-million base target or the higher figures some market participants have cited.

Originally reported by Aaron Michael C. Sy for BusinessWorld.