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Money Market Products

Government Securities   

Treasury Bills and Fixed Rate Treasury Notes (FXTNs) are the safest investment instruments available in the market, being direct and unconditional obligations of the Republic of the Philippines. These instruments are negotiable. They can be traded in the market anytime before their maturity.

As a Government Securities Eligible Dealer, we enjoy access to both the primary and secondary markets for Treasury Bills and FXTNs and can make the instruments available to you at competitive terms.

    Treasury Bills
These carry maturities of less than one year and are sold at a discount from face value.

    Fixed Rate Treasury Notes
These have maturities of more than one year and fixed coupons that pay interest on a semi-annual basis.

These are debt securities issued by the Republic and mostly denominated in US dollars. As with peso-denominated government securities, you may buy or sell eurobonds through us at prevailing market rates.

Commercial Papers and Corporate Bonds   

These are negotiable, secured or unsecured promissory notes of corporations duly registered with the Securities and Exchange Commission. We have acted as underwriters and selling agents for some of the country's high grade corporate issuers.

Promissory Notes   

    Corporate Promissory Notes
These are short term non-negotiable, unconditional and unsecured debt obligations of private corporations. Through our intermediation function, you can lend directly to prime corporate borrowers.

    MIB Promissory Notes
These are our own promissory notes issued directly to investors. Our track record of financial performance and the prime quality of our assets assure the utmost safety of your investment in MIB PNs.

Short-Term Credit Facilities   

To address your corporate working capital requirements, we may establish a Money Market facility in your favor subject to our standard credit evaluation procedures and our agreement on credit terms and conditions. Your borrowings may be evidenced by your non-negotiable promissory note issued to us or third party funders priorly designated by us.

You can also tap the credit market by registering with the SEC and issuing your short term commercial papers through us as your selling agent. Your flotation of commercial papers shall be subject to pertinent provisions of the Securities Regulation Code.

Tier 2 Notes and LTNCDs   

    Unsecured Subordinated (Tier 2) Notes
Unsecured subordinated notes issued by banks qualify for Tier 2 capital under the regulations of the Bangko Sentral ng Pilipinas (BSP). While Tier 2 Notes are subordinated to claims of depositors and creditors of the Bank, Tier 2 Notes are higher yielding bank debt with a substantial yield pick-up over bank deposits and most alternative fixed income securities.

    Long-Term Negotiable Certificates of Deposit (LTNCD)
LTNCDs are negotiable certificates of deposit indicating an amount of indebtedness of a bank with a designated maturity. The LTNCDs form part of a bank’s deposits and rank senior to all unsecured and subordinated debts, and all classes of equity securities.

For individual investors, interest income from Tier 2 Notes and LTNCDs is exempt from the 20% final withholding tax if held for at least five years.

* To compute for your Treasury Bills cost or maturity value, please click here.

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