Premyo Bonds

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FAQs For Online Facility

November 2019

HOW TO INVEST IN THE PREMYO BONDS via ONLINE FACILITY? and by answering the mandatory fields
STEP 1: Accessing the Online  Visit the Bureau of Treasury (BTr) in the virtual forms on the BTr website:
Facility website at www.treasury.gov.ph. Look 1. Amount to Invest
for the Premyo Bonds tagline: Invest 2. Investor Name
Pa More, Panalo Pa more logo and 3. Birth Date
click. 4. Gender
 Make sure you have an existing 5. Country
Development Bank of the Philippines 6. Region
(DBP) or Land Bank of the Philippines 7. Province
(LANDBANK) Philippine peso savings 8. Street Address
or current account. 9. Email Address
 Only individual accounts are eligible 10. Contact Number
for the online facility. 11. Account Name
12. Settlement Bank (DBP or
Note: And/Or accounts, in-trust-for (ITF) LANDBANK)
accounts, and corporate accounts are not 13. Provide the correct Captcha
eligible for online ordering. However, you Challenge
may still order over-the-counter (OTC)
from your respective selling agent banks. STEP 3: Payment of Premyo  Once you have answered all necessary
Bonds questions and completely filled in all
 Please note that your settlement the necessary fields, click “Submit”.
account must first be enrolled in the  You will be redirected to the Selling
online payment facility or electronic Agent’s electronic payment system
payment system of the LBP (iAccess) (either DBP or LANDBANK), to place
or the DBP (Electronic Payment your order and give authority to debit
System - EPS). It is recommended that your bank account.
you enroll your account immediately,  Accepted modes of payment via
if you haven’t yet. Online Facility:
 Debit bank account (via DBP
and/or LANDBANK account)
STEP 2: Filling in forms via  In order to purchase Premyo Bonds,
Online Facility you will need to agree to the terms by
ticking the relevant boxes in the page
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 The Premyo Bonds are offered at a A. QUESTIONS IN RELATION TO PREMYO BONDS’ TERMS AND CONDITIONS
minimum denomination of PHP A.1. Issuer Q. Who is the issuer?
500.00 only. A. The Republic of the Philippines via the
Bureau of the Treasury (BTr)
Note: Every PHP 500.00 placement is
equivalent to and entitles the bondholder A.2. Issuance Q. What is the issuance?
to 1 Premyo Bonds Unit. A. Philippine Peso Denominated Premyo
Bonds
STEP 4: Notice of Successful  Upon completion of your payment
Payment instruction, you will be redirected to a A.3. Status of the Premyo Q. What is the status of the Premyo
webpage that will provide a Notice of Bonds Bonds?
Successful Payment (“NOSP”) that A. The Premyo Bonds are direct,
contains your Reference Number unconditional, unsubordinated, and
after completing the application to general obligations of the Republic and
purchase. You may use the Reference shall at all times rank pari passu and
Number as your tracking number to without any preference among other debt
check on the status of your instruments issued by the BTr (including
placement. RTBs, T-Bonds, and T-Bills).
 For your convenience you will also
receive your NOSP via e-mail. A.4. Issue Size Q. What is the issue size?
A. Minimum of PHP 3.0 billion. However,
STEP 5: Confirmation of Sale  After a successful transaction via the Republic may opt to increase the issue
BTr’s Online Facility, a physical size.
Confirmation of Sale (“COS”) will be
issued to the branch of account as A.5. Joint Lead Issue Q. Who are the Joint Lead Issue
your proof of investment after the Managers, Joint Issue Managers?
issue date (30 banking days from Managers, and Selling A. Development Bank of the Philippines
issue date). Branch of account refers Agents (DBP) and Land Bank of the Philippines
to the bank account used for the (LANDBANK)
purchase of the Premyo Bonds (either
DBP or LANDBANK). Q. Who are the Joint Issue Managers?
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A. BDO Capital (BDO Capital), China Bank

Capital (CBCap), and First Metro Q. What is the cash reward ratio?
Investment Corp. (FMIC) A. The cash reward ratio is 0.625% gross,
which will be used to determine the cash
Q. Who are the Selling Agents? reward pool
A. DBP, LANDBANK, BDO Unibank (BDO),
BDO Capital, China Banking Corp. (China Q. Is the interest rate fixed?
Bank), CBCap, FMIC, and Metropolitan A. Yes, the interest rate is to be calculated
Bank and Trust Company (Metrobank)* on a 30/360-day basis

*Online Placements may be made via First Q. How often are interest rate payments?
Metro Securities Brokerage A. Interest rate payments will be paid
quarterly in arrears on the last day of each
A.6. Tenor Q. What is the tenor of the Premyo 3-month interest period. Each Premyo
Bonds? Bond will cease to bear interest on the
A. The Premyo Bonds will have a tenor of Maturity Date. If the Interest Payment
1 year Date is not a Business Day, interest will be
paid on the next succeeding Business Day,
Q. Can the Premyo Bonds be pre- without adjustment in the amount of
terminated? interest to be paid.
A. No, the Premyo Bonds cannot be pre-
terminated A.8. BVAL Q. What is BVAL?
A. The Bloomberg Valuation (“BVAL”)
Q. What is the maturity date of the provides benchmark interest rates across
Premyo Bonds? various tenors and is the basis from which
A. 18 December 2020 various transactions are priced. In the case
of the Premyo Bonds, the tenor is 1 year,
A.7. Interest Rate Q. What is the interest rate of the Premyo so the 1-year BVAL will be used to
Bonds? determine the interest rate of the Premyo
A. The interest rate of the Premyo Bonds Bonds.
shall be determined using the 1-year BVAL
on 22 November 2019, less the cash A.9. Form and Q. What is the form of the Premyo
reward ratio Denomination Bonds?
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A. The Premyo Bonds are scripless in form with DBP or LANDBANK. Also, this
Online Facility can be accessed as long
Q. What is the minimum denomination as there is an available internet
for the Premyo Bonds? connection and an internet-capable
A. The Premyo Bonds can be bought at a device such as your smart phone,
minimum denomination of PHP 500.00 laptop, tablet, and desktop computer.
and integral multiples of PHP 500.00 As such, it allows investors residing
thereafter. abroad to participate in any Premyo
Bond issuance from their area of
Q. Can the Premyo Bonds be traded in the residence.
secondary market?
A. No, the Premyo Bonds are non- B.2. Online Facility Q. Who can use the Online Facility?
tradable. A. Any individual who meets the
following criteria may use the Online
Facility platform to purchase Premyo
Bonds:
B. PROCEDURAL QUESTIONS  Must be at least eighteen (18)
B.1. Online Facility Q. What is the Online Facility? years old at the time of
A. The Online Facility is accessible via ordering;
the BTr website: www.treasury.gov.ph  In possession of an active
It is an online ordering facility that will Philippine Peso deposit
allow clients to invest in the Premyo account (current/savings with
Bonds issued by the Republic of the online access) from DBP or
Philippines via the BTr during primary LANDBANK;
offering, or the period where Premyo  Deposit account shoul d be
Bonds are sold to the investing public. capable of transacting in the
banks’ Electronic Payment
The Online Facility enables you 24/7, System (EPS), which is iAccess
(except during maintenance downtime for LBP and EPS for DBP.
10PM to 2AM), access to the ordering
platform from anywhere in the world as Note: An EPS is a platform that
long as you have a Philippine peso facilitates acceptance of electronic
deposit account (single individual payment for online transactions.
current/savings with online access) Please contact your bank to know
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more about their requirements, if

any. For investors residing abroad, B.5. Purchasing via Online Q. Can I order Premyo Bonds online
you may contact DBP or LANDBANK Facility using a joint account?
hotline numbers: (DBP) Toll-free A. No, the Online Facility may only
Number 1-800-10-327-8888 accept orders/placements from
and (LANDBANK) PLDT Toll-free single individual accounts.
Number 1-800-1-040-5700.
B.6. Purchasing via Online Q. Is there a maximum amount that
B.3. Online Facility Q. How does one access the Online Facility can be placed using the Online
Facility? Is it accessible outside the Facility?
Philippines? Is it accessible during A. The Online Facility can accept
weekends/ holidays? Is the Online placements up to PHP 500,000.00
Facility free to use? per transaction.
A. Investors can access the Online
Facility through the BTr website Q. Can I place orders more than
(www.treasury.gov.ph) and fill out once?
all the mandatory information. It is A. Yes you may.
accessible outside the Philippines,
even during weekends/holidays B.7. Purchasing via Online Q. Does the Online Facility provide
within the set offer period. Yes, the Facility status updates regarding my
Online Facility is free of any charges. placement?
A. Yes. The Online Facility will
B.4. Documentary Q. Are there any documentary provide you with a Notice of
Requirements requirements that I need to submit Successful Payment (“NOSP”) which
to be able to use the Online Facility? shall contain a Reference Number
A. Other than the documents after completing the application to
required to possess a DBP or purchase. You may use the
LANDBANK Peso account, there are Reference Number as your tracking
no physical documents required to number to check on the status of
be submitted. The entire your placement.
documentation process shall be
made online using the BTr Online
Facility platform.
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For your convenience, the Online ₋ The payment bank is offline

Facility will send you NOSP via e-
mail. B.10. Proof of Payment via Q. What is my proof of payment?
Online Facility A. Upon successful payment, you will
B.8. Purchasing via Online Q. What happens after I complete receive an NOSP. The NOSP shall
Facility my transaction via Online Facility? serve as your proof of investment in
A. After a successful transaction, the Premyo Bonds. As a convenience
your purchase order shall be feature, a system-generated NOSP
transmitted to the bank that you shall be sent to your designated e-
nominated (DBP or LANDBANK). mail address, which was the one
Your bank will conduct a final indicated upon opening of the
checking of your placement account.
information and debit your payment
from your bank settlement account. Note: Premyo Bonds are scripless
If all requirements are complied securities and are digitally registered
with, your application to purchase in the National Registry of Scripless
the Premyo Bonds shall be Securities (NRoSS).
confirmed. Otherwise, it will be
rejected. For a successful B.11. Online Facility Q. Can I use the Online Facility to
transaction, you will receive an NOSP invest in other securities issued by
via e-mail from your bank. You may the BTr and private issuers?
also print the receipt of the A. As of now, the Online Facility
successful transaction as your proof caters only to Retail Treasury Bonds
of purchase. (RTBs) and Premyo Bonds being
offered during the primary offering
B.9. Purchasing via Online Q. What are the possible reasons for period, or the period when the RTBs
Facility order rejection? and Premyo Bonds are initially
A. Usual reasons may be, but not offered to the investing public.
limited to, the following:
B.12. Proof of Investment Q. What will serve as my proof of
₋ Invalid account number; via Online Facility investment?
₋ Insufficient funds in the A. After a successful purchase of
bank account; Premyo Bonds through the Online
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FAQs For Online Facility

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Facility, a physical Confirmation of other private banks to connect with

Sale (“COS”) will be issued to the the Online Facility. The BTr is also
branch of account in the Philippines looking forward to the next RTB and
as your proof of investment after the Premyo Bond issuance where
issue date. Branch of account refers investors can have more banks to
to the bank account used for the choose from online.
purchase of the Premyo Bonds
(either DBP or LANDBANK). B.15. Online Facility Q. Why is there an age limit (18
years old) to access the Online
B.13. Interest Payments Q. Where will the interest payment Facility?
and principal amount upon maturity A. The Online Facility restricts
be credited from investing in Online investors of below 18 years of age to
Premyo Bonds? ensure the financial capability and
A. Quarterly Interest Payments and knowledge of first-time investors
principal payment upon maturity will dealing in online transactions.
be credited back to the settlement Investors should understand and be
account that was debited/ used aware of the possible risks of the
during the purchase of Premyo investment done through the Online
Bonds. Facility.

B.14. Online Facility Q. Why are only DBP and However, investors below the age of
LANDBANK peso deposit account 18 may still invest in the Premyo
holders able to access the Online Bonds through Over-the-Counter
Facility? transactions, under “In Trust For”
A. The Online Facility is a pilot online and “For the Account Of” accounts.
platform which is an initiative of the
government (through the BTr) where B.16. Online Facility Q. Why are joint, “FAO” and “ITF”
orders and purchases of Premyo accounts not allowed to place
Bonds can be done online with the orders via the Online Facility?
assistance of the government A. The Online Facility is only available
financial institutions. At the moment to individual peso deposit accounts
these are DBP and LANDBANK. (with online access) due to system
Currently, the BTr is in talks with limitations and “tick box”
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agreements that should be executed representative of the Philippines in

by the owner of the account. which said document is executed.

B.17. Account Opening Q. If I already have an existing B.19. Beneficiary Claims Q. In case of sudden death of the
account with the bank I want to buy investor, how can the beneficiary
Premyo Bonds from, do I need to claim the Premyo Bonds?
open another account specifically A. The beneficiary may claim the
for this investment? proceeds of the Premyo Bonds
A. No, any Peso Account, even an subject to the laws on succession.
existing one would do. This is where
the interest payments, the Premyo, B.20. Beneficiary Claims Q. In case an investor dies, what
if won, and upon maturity, the happens to their investment in the
principal, will be credited to. Premyo Bonds? Are there taxes to
be paid?
However, certain Payroll Accounts A. The investment forms part of the
may have restrictions on accepting estate of the deceased, which is
deposits. It is advised that you subject to settlement by the
coordinate with your Bank to inquire surviving heirs. The heirs are
if such restrictions apply to your required to pay estate taxes on the
account. deceased’s estate wherein the
Premyo Bonds form part of.
B.18. Account Opening Q. How can an OFW open a Peso
Account? B.21. Documentation Q. What documentation will prove
A. The OFW may visit his/her that they bought Premyo Bonds?
preferred bank or, in some cases, its A. A Confirmation of Sale will be
remittance partner to open an available for pick-up from the
account and comply with the respective branch of your Selling
account opening process and the Agent within 30 banking days from
documentary requirements. the issue date of the Premyo Bonds.
However, if the account opening is
performed outside the Philippines, B.22. Interest Payments Q. From a retiree intending to live-
signature cards will need to be off the interest from the Premyo
authenticated by a consular Bonds: Can interest payments be
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scheduled on a monthly basis to the BTr page:

instead of quarterly? Therefore, the www.treasury.gov.ph.
earnings from the Premyo Bonds
can be used to pay monthly bills (i.e. If the OFW or any interested investor
electricity, phone bills, etc.) does not have an existing peso
A. Unfortunately, no. Quarterly account, please refer to item B.18.
interest payment is the market Account Opening details.
convention for Premyo Bonds,
similar to Retail Treasury Bonds . B.25. Investor Eligibility Q. Is there a minimum age for
investors for the Premyo Bonds?
B.23. Investment Q. What are the requirements for A. For purchasing of the Premyo
Requirements individuals to invest in the Premyo Bonds via Online Facility, an investor
Bonds? must be at least 18 years old with a
A. Individual investors will be single individual account.
required to designate an existing or
open a new Peso account with any of For investors who are younger than
the Selling Agents, which they will 18 years old, or want to invest using
designate as their Settlement accounts other than a single
Account where interest payments individual account, please refer to
and upon maturity, the principal will the FAQs for Over the Counter (OTC).
be credited. The Tier 2 and Tier 3
winnings will also be credited to the B.26. Investor Eligibility Q. Can credit cooperatives buy
designated account. Premyo Bonds?
B.24. Investor Eligibility Q. Can an OFW purchase Premyo A. Yes
Bonds? What is the process if the
OFW is out of the country? B.27. Investor Eligibility Q. Can a foreigner invest in Premyo
A. Yes, on the condition that he/she Bonds?
has an existing individual peso A. Yes, provided he or she has a
account (Savings/Current) with DBP Philippine Peso deposit account
or LANDBANK. (savings/current) with one of the
Selling Agents.
With the new on-line application
system, it is as simple as going online B.28. Mode of Purchase Q. Where can I buy Premyo Bonds?
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A. Premyo Bonds may be purchased

via Online Facility for investors with For the Tier 2 (PHP 100,000) and Tier
DBP, and/or LANDBANK accounts. 3 (PHP 20,000) winners, within five
Alternatively, the Premyo Bonds may (5) days from the cash rewards draw
be purchased from the branches of date, the Premyo Bond Facility Agent
any of the Selling Agents. shall notify the winners thru their
Settlement Bank and provide the
B.29. Mode of Purchase Q. How can an investor pay for the winnings, which shall be credited to
Premyo Bonds via Online Facility? the winners’ designated settlement
A. Payments may be made online via account. Investors can check the
Debit Authority from their individual balance of their respective bank
current or savings account accounts to see whether the cash
Premyo amount was credited or not.
B.30. Cash Reward Eligibility Q. If I win, am I still eligible to win in
the succeeding cash rewards draws? B.32. Cash Reward Claiming Q. How do I claim my Cash Reward?
A. Yes, an investor’s chance of A. For the winner of the PHP
winning is the same every quarter. 1,000,000.00, you may claim your
cash reward thru any Land Bank of
B.31. Cash Reward Q. How do I verify that I won a cash the Philippines Branch, to be paid-
Verification reward? out via Manager’s Check, with the
A. On Each cash rewards date, the presence of a BTr representative(s).
BTr will publish the list of NRoSS
accounts of the winners with the The winner of the PHP 1,000,000.00
corresponding cash Premyo on the shall be required to present the
BTr website: www.treasury.gov.ph. following:

Within five (5) days from the cash 1. One (1) valid and unexpired
rewards draw date, the Premyo Philippine government-issued
Bond Facility Agent shall contact ID bearing his/her name,
each winner of the PHP 1,000,000.00 signature and photo;
cash reward (Tier 1) through their 2. Notification Letter sent by the
Settlement Bank via registered mail Premyo Bond Facility Agent via
to notify them that they have won. the winner’s Settlement Bank;
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3. In the event that the winner submit the required documents shall
cannot claim the Premyo be ground for forfeiture of the cash
personally, he/she may rewards in favor of the BTr.
designate an authorized
representative to claim the B.34. Non-Cash Reward Q. What is the non-cash reward?
Premyo subject to the A. The non-cash reward is real
presentation of a Special property in the form of a condo unit
Power of Attorney designating or a house and lot to be given by the
the representative/s, in participating institutions
addition to items 1, and 2 (DoubleDragon, Megaworld, Vista
above. Land, etc.) The non-cash rewards are
awarded to the Tier 1 winner of the
Submission of the requirements Premyo Bonds for the 1st, 2nd, and
above will trigger the verification 3rd cash rewards draw.
process with the Premyo Bonds
Facility Agent. Details on the B.35. Non-Cash Reward Q. How do I win the non-cash
submission of requirements as well reward?
as the verification process will be A. The Grand Prize winner of PHP
provided in the Notification Letter 1,000,000.00 will also receive the
sent by the Premyo Bond Facility non-cash reward of the Premyo
Agent. Bonds for the 1st, 2nd, and 3rd cash
rewards draw.
The PHP 100,000.00 and PHP
20,000.00 cash rewards shall be B.36. Non-Cash Reward Q. Who are eligible winners to the
credited directly to the settlement non-cash reward?
account of the winners. A. Eligible winners to the non-cash
reward are eligible investors to the
B.33. Cash Reward Claiming Q. Until when can I claim my PHP Premyo Bonds, who are the sole
1,000,000.00 cash reward? winners to the Tier 1 prize of the
A. You can claim your cash reward Premyo Bonds for the 1 st, 2 nd and 3 rd
within one hundred eighty (180) cash rewards draw.
days from the notification of the
Premyo Bond Facility Agent through
your settlement bank. Failure to
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B.37. Non-Cash Reward Q. How do I avail of the non-cash B.40. Non-Cash Reward Q. Is the non-cash reward
reward? guaranteed by the BTr?
A. Every PHP 500.00 placement is A. No. It is up to the participating
equivalent to and entitles the institutions (DoubleDragon,
Bondholder to 1 Bond Unit. Each Megaworld, and Vista Land)
Bond Unit is part of the cash rewards
draw. B.41. Non-Cash Reward Q. Why is there a non-cash reward
component?
B.38. Non-Cash Reward Q. How do I know if I won the non- A. The non-cash rewards are to
cash reward? further incentivize the untapped
A. The NRoSS account number of the market/ unbanked segments of the
winner of both the cash and non- public and encourage a culture and
cash reward will be posted on the habit of saving and investing.
official website of the BTr
(www.treasury.gov.ph). The Prize B.42. Non-Cash Reward Q. What are my chances of winning
Bond Facility Agent will also notify the non-cash reward?
the winner’s respective Selling Agent A. Assuming a PHP 3.0 billion
of the NRoSS account number of the issuance and given that every PHP
winner via email of SMS. The 500.00 investment is equivalent to 1
winner’s respective Selling Agent will Bond Unit, 0.00002% chance for the
then identify and notify the winner 1 st, 2 nd, or 3 rd cash rewards draw.
that they have won the non-cash Only 1 Bond Unit out of the 6 million
reward. The winner’s respective Premyo Bonds units eligible for the
Selling Agent will also mail a Cash Rewards has a chance to get the
Notification Letter addressed to the non-cash reward as this will be
winner, from the Premyo Bond given/donated to the PHP
Facility Agent. 1,000,000.00 Grand Prize winner on
the 1 st, 2 nd, and 3 rd cash rewards
B.39. Non-Cash Reward Q. Who are the donors of the non- draw.
cash reward?
A. DoubleDragon, Megaworld, and B.43. Non-Cash Reward Q. Why are there only three non-
Vista Land. cash reward winners?
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A. There are only three winners for the Status of the property (if RFO or
the non-cash reward because there pre-selling).
are only three participating
institutions (DoubleDragon, B.48. Non-Cash Reward Q. What are the documentary
Megaworld, and Vista Land) for this Claiming requirements needed to claim my
tranche of the Premyo Bonds. non-cash reward?
A. You will need the following
B.44. Non-Cash Reward Q. Is the non-cash reward documents:
transferable?  Philippine government
A. No, however once the non-cash issued ID / proof of identity
reward is legally transferred to the  Confirmation of Sale/ Proof
respective Grand Prize winner, of Investment
he/she/ as the legal owner of the
non-cash reward, has the authority B.49. Non-Cash Reward Q. Can the non-cash reward be used
and right to transfer the prize. as collateral?
A. Once the non-cash reward has
B.45. Non-Cash Reward Q. Can the non-cash reward be been legally transferred to the
exchanged into cash? respective winner for the quarter,
A. No. he/she, as the legal owner of the
non-cash reward, has the authority
B.46. Non-Cash Reward Q. Is the non-cash reward taxable? and right to use the non-cash reward
A. Yes. A donor’s tax of 6% – in- as collateral in their own personal
general- and other Taxes: capacity.
Documentary Stamp Tax (0.75%) /
Registration Fees and Transfer Fee B.50. Non-Cash Reward Q. Can a foreigner win the non-cash
(estimated 1%) shall be for the reward?
winner’s account. A. For the condo unit, provided that
he or she has all the requirements to
B.47. Non-Cash Reward Q. How do I claim my non-cash qualify as an Eligible Investor and
Claiming reward? none of the disqualifications.
Thru the Escrow Agent by donation
directly by the Developer (Donor) to For the house and lot, as a general
the Winner (Donee) depending on rule, a foreigner is not allowed to
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own a land except if the former is a B.53. Others Q. How do I know that my
natural born Filipino citizen by investment is included in the cash
inheritance only. rewards draw?
A. Once the Premyo Bonds are
B.51. Others Q. Is there a maximum amount that issued, the investor will receive a
I can invest in the Premyo Bonds? Confirmation of Sale that includes
A. There is no maximum investment the NRoSS account number with the
amount for the Premyo Bonds; corresponding placement amount/
however, there is a limit to the investment. This Confirmation of
number of Premyo Bonds units Sale also confirms that the BTr will
eligible for the cash rewards per include the investor’s investment /
NRoSS account. NRoSS account into the cash rewards
draw.
Since an investment of PHP 500.00 is
equivalent to and entitles the Additionally, as a Bondholder of the
investor to 1 Premyo Bonds unit, a Premyo Bonds, you will receive a
maximum of 20,000 Premyo Bonds fixed quarterly coupon which you
units (equivalent to an investment can monitor. As such, your bond
amount of PHP 10,000,000.00) shall holdings are properly recorded in the
be eligible per NRoSS account for NRoSS wherein the same data is used
inclusion in each cash rewards draw. for the generation of e-RNs. Given
this, you can be assured that your
The monitoring of Premyo Bonds bond units were part of the cash
units eligible for the cash rewards rewards draw.
shall be made on a per NRoSS
account and per Selling Agent basis. Note: A Confirmation of Sale will be
available for pick-up from the respective
B.52. Others Q. Can I buy Premyo Bonds from branch of your Selling Agent within 30
multiple Selling Agents? banking days from the issue date of the
A. Yes you may buy Premyo Bonds Premyo Bonds.
from multiple Selling Agents.
B.54. Others Q. An investor plans to buy PHP
500,000.00 worth of Premyo Bonds
and wants to maximize the chances
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of winning a Premyo during every

quarterly cash rewards draw. To B.57. Taxation Q. Are my coupons and cash
achieve this, should the investor rewards taxable?
open several NRoSS securities A. Prevailing final withholding tax on
accounts with different Selling coupon payment shall be for the
Agents, breaking down the account of the bondholders. All cash
investment into several accounts, rewards and non-cash rewards
so he/she has more chances to win received by the winners shall be net
a Premyo? of all applicable taxes, fees, and
A. No need to segregate Premyo charges. The Premyo Bond Facility
Bonds purchase through several Agent shall facilitate payment of
NRoSS accounts as an investor’s such taxes, fees and charges.
chance of winning is determined by
the total amount of his/her Documentary stamp tax (DST) on
investment, not by the number of original issue shall be for the account
NRoSS accounts held. of the Issuer.

B.55. NRoSS Securities Q. Who shall intermediate for an Q. Will the tax treatment of the
Account investor in the opening of his Premyo Bonds be affected by the
NRoSS securities account? TRAIN Law?
A. NRoSS Securities Accounts are A. Pending the implementation of
only available via the Bureau of the TRAIN Law, Package 4 of TRAIN
Treasury’s National Registry of proposes a single rate of 15% final
Scripless Securities (NRoSS) tax to be imposed regardless of
platform. The Selling Agent shall be currency, maturity, issuer, and other
the intermediary. differentiating factors.

B.58.26.26. Tax Exemption Q. Our client is a tax-exempt

B.56. Senior Citizens Q. Can Senior Citizens’ interest institution but their certification of
income on the Premyo Bonds be exemption is dated 2006. They have
exempt from withholding taxes? a pending request for a certification
A. No, passive income is subject to since last year, but BIR has not
withholding tax. issued a new certification yet. Can
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they submit the 2006 certification to

avail themselves of the Premyo C.3. Coupon Rate Q. How was the final coupon rate for
Bonds? Premyo Bonds arrived at?
A. The institution must have to wait A. The pricing of the Premyo Bonds is
for the BIR certification before their based on BVAL rates for 1-year bonds,
claim for tax exemption will be which is the accepted benchmark in the
honored. They may still invest in the Philippine market.
Premyo Bonds but their interest
earnings and winnings will be subject C.4. General Information Q: What are Premyo Bonds?
to tax. A: The Premyo Bonds are short-term debt
securities issued by the Republic of the
Philippines (ROP or the Republic) via the
Bureau of the Treasury (BTr). The Premyo
C. ISSUE RELATED QUESTIONS Bonds are part of the government’s
C.1. AMLA Q. Are investments in Premyo Bonds savings mobilization program designed to
subject to AMLA? make government securities available to
A. Yes. In this regard, Selling Agents retail investor.
require their investor to fill out a customer
information sheet in compliance with the Premyo Bonds are fixed-income securities
Know- Your-Customer (KYC) provision of that pay a fixed interest rate per annum
the AMLA. over a specified period of time with a
promise to return the principal at the end
C.2. Cost Considerations Q. What is the cost consideration for the of the term.
investor with respect to the handling of
his Premyo Bonds? Broker Premyo Bonds also provide investors with
intermediation fee? Custodianship fee? the chance to win a cash reward of up to
A. Upon placement on Primary Offer of PHP 1,000,000.00 every quarter plus as
Premyo Bonds: None. The investor would non-cash reward for the 1st, 2nd, and 3rd
just have to pay the principal amount and quarter over the life of the bond, which
no other charges shall be charged to for the first issuance is one year.
him/her apart from potential notarial fees
which differ per Selling Agent. If ordered C.5. General Information Q. What are the mechanics for the cash
online, there are no additional fees. rewards draw?
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A. The cash rewards draw shall determine

the winners of the cash reward to be held At least one (1) representative from
every quarter and shall coincide with the Commission on Audit (COA) who will
interest payment date of the Premyo supervise the selection of the winning
Bonds. e-RNs.

Five (5) days before every cash rewards C.7. General Information Q. What prizes can I win during each cash
draw date, the BTr will provide the rewards draw?
masterlist of investors to the Premyo A. For each cash rewards draw, investors
Bond Facility Agent, Land Bank of the have a chance to win cash rewards of PHP
Philippines Trust Banking Group. 1,000,000.00 (Tier 1), PHP 100,000.00
(Tier 2), and PHP 20,000.00 (Tier 3). All
For every PHP 500.00 invested, an investor cash rewards are net of applicable taxes.
will be assigned one Bond Unit. On the
cash rewards draw date, each Bond Unit C.8. General Information Q. How many investors can win during
shall be assigned a 20-character Electronic each cash rewards draw?
Rewards Number (e-RN). The e-RN shall A. A Cash Reward Structure (CRS) will be
be based on the investor’s NRoSS Account announced on the issue date of the
Number (15 characters) and an additional Premyo Bonds. The number of winners
5 characters corresponding to the number each quarter will be based on the final
of Premyo Bonds units eligible for the cash issue size. For example, if the Premyo
rewards. The Premyo winners shall be Bonds has a total issue size of PHP 3.0
determined via a randomized selection billion, the CRS will be as follows:
among all the e-RN. Premyo Net Premyo Amount No. of
Tier (PHP) Winners
Each cash rewards draw shall be made 1st 1,000,000.00 1
only by the Rewards Committee 2nd 100,000.00 10
3rd 20,000.00 50
composed of the following:

1. Two (2) Officials from the BTr Q. How is the CRS set?
2. Trust officer of the Facility Agent A. The CRS is based on the issue amount
rounded down to the nearest PHP 500
3. Officer of the DBP
4. An official/ representative of million, multiplied by the Cash Reward
FINEX Academy Ratio of 0.625%, which is subject to a gross
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receipts tax of 20%, bringing the Cash

Reward Ratio to 0.50% net. C.11. Others Q. Are Premyo Bonds eligible as collateral
for loans?
In the example above, a PHP 3.0 billion A. No they are not. They cannot be
issue size multiplied by the Cash Reward pledged as collateral because the Premyo
Ratio of 0.50% net means that the total Bonds are non-transferable.
amount to be awarded to winners will be
PHP 15,000,000.00 every year, or PHP C.12. Others Q. Are there licensed fixed income
3,750,000.00 every quarter. The quarterly salesmen in branches of the Selling
cash prize is also subject to a gift tax of Agents?
20%, so total cash rewards per quarter will A. Not all branches have licensed fixed
be equivalent to PHP 3,000,000.00. Thus, income salesmen. However, if a specific
there will be 61 winners. branch does not have a fixed income
salesman, the investors can be directed to
Winners shall be determined on a per e- other fixed income salesmen in other
RN basis. Each e-RN may only win once branches.
every cash rewards draw. So, an investor
who possesses multiple Bond Units may C.13. Others Q. What happens to the Premyo Bonds if
win multiple times each cash rewards the bank wherein the purchase was made
draw date. closes down?
A. The Premyo Bonds are obligations of
C.9. General Information Q. What are Premyo Bonds for? the National Government and are
A. The Premyo Bonds are offered to the therefore unaffected by the entity that
public by the National Government to acted as a Selling Agent. A new settlement
promote financial inclusion as well as to account in another bank will however
provide an opportunity for investors to need to be nominated so that the interest
receive a larger return on their investment and principal payments can continue to be
through the cash and non-cash rewards. paid to the investor.

C.10. Investment Q. Is my principal investment assured? C.14. Pre-Termination Q. Can the Premyo Bonds be pre-
A. Yes, it is. The Premyo Bonds are a direct terminated?
obligation of the Republic of the A. No, Premyo Bonds cannot be pre-
Philippines. terminated because the Premyo Bonds
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mechanics are based on the final issue size

of the tranche, thus any pre-termination is C.17. Premyo Bonds Terms Q. Are the terms of this Premyo Bonds
not allowed. the same as those of RTBs issued in
previous years?
C.15. Secondary Market Q. Can Premyo Bonds be traded in the A. While both Premyo Bonds and RTBs pay
secondary market? quarterly interest payments, an
A. No, Premyo Bonds cannot be traded in investment in the Premyo Bonds provides
the secondary market. To avoid any you a chance to win up to PHP
potential issues in relation to the cash and 1,000,000.00 million every quarter, a
non-cash rewards, the Premyo Bonds are feature which is not present in the
non-transferable and cannot be traded in previous RTBs.
the secondary market.
C.18. Premyo Bonds Terms Q. Are Premyo Bonds government
C.16. Rationale for Premyo Q. Why is the BTr issuing Premyo Bonds guaranteed?
Bonds this year? A. No because it is the government itself
A. The BTr is issuing Premyo Bonds to that is the issuer. The Premyo Bonds are a
provide the investing public a means to direct liability of the National
invest in a security that is backed by the Government.
National Government in an amount that is
affordable (min. PHP 500 investment). It is C.19. Premyo Bonds Terms Q. Can I buy PHP 100,000 worth of
also a means for the National Government Premyo Bonds, but in multiples of PHP
to raise money to complement tax 20,000 all in the same name?
collections for its funding requirements, A. Yes, you can, but it might be tedious
including the Build-Build-Build program. and time-consuming both for you and the
As such, by investing in the Premyo Bonds, Selling Agent. Better to buy PHP 100,000
the individual investor is also supporting worth in one name because either way,
the economic agenda of the National the number of Premyo Bonds units will be
Government. the same at 200. There is no extra benefit
to split up your investment.
Furthermore, the issuance of Premyo
Bonds promotes savings among Filipinos C.20. Premyo Bonds versus Q. Why do corporate issues like Petron
and provides investors a chance to win Other Issuances retail bonds have a better interest rate?
additional cash rewards. A. Corporations, both public and private,
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need to pay a premium to the benchmark

rates being set by trading of government D.2. Economy Q. If the economy is so robust, why is the
securities due to the added credit risk. government still borrowing money from
Typically, the higher the risk, the higher the public?
the expected return. Sovereign issues are A. Borrowing money from the public
generally considered to have the lowest remains to be a sound source of funding
risk among investments in its home given that the credit rating of the
currency and therefore yield lower Philippines is already investment grade as
interest rates than corporate issuances. affirmed by the 3 major credit rating
Moreover, an individual will not be able to agencies. The higher level of confidence
buy corporate issues for an investment of translates to having the ability to borrow
only PHP 500.00. The lower interest of the at better rates; hence, increasing the
Premyo Bonds also reflects the funds for infrastructure and social
administrative costs in making it an programs.
inclusive public investment vehicle.
D.3. Economy Q. What are the factors that will affect
C.21. Use of Proceeds Q. Where do proceeds of the Premyo the movement of interest rates?
Bonds go? How does the National A. The interest rate is affected by, among
Government make use of the funds? others, changes in the price level or the
A. The proceeds of the Premyo Bonds will inflation rate, borrowing and spending by
go to the Government’s coffers. These Government, and activities by banks.
funds will be used to fund economic Other factors that could influence the
programs of the government such as interest rates include the maturity period
infrastructure development and social of the financial instrument and the risks
services. associated with the instrument.

D. ISSUER – RELATED QUESTIONS

D.1. ROP Debt Obligation Q. Has the Philippines defaulted on its
peso obligations?
A. The Philippines has no record of default
on its Peso obligations.