Philippine Government Securities are:

CASH MANAGEMENT BILL

The cash management bill (CMB) is the most flexible instrument for a Central Bank because it
can be issued when needed, allowing the Central Bank to have lower cash balances and issue
fewer long-term notes. CMBs tend to pay higher yields than bills with fixed maturities, but their
shorter maturities lead to lower overall interest expense.
The Government of India, in consultation with the RBI, had decided to issue a new short-term
instrument, known as Cash Management Bills, to meet the temporary cash flow mismatches of
the Government. CMBs in India are non-standard, discounted instruments issued for maturities
less than 91 days. CMBs have the generic character of Treasury Bills.
Cash Management are government-issued securities with maturities of less than 91 days. e.g. 35
days or 42 days. Investing in these bills affords security and liquidity to the investors. They can
be turned into cash anytime you need and it is easy to sell.

TREASURY BILLS (T-BILLS)

Government securities (GS) are the unconditional debt obligations of the Republic of
the Philippines. These are all denominated in the local currency, the Philippine peso.
The securities are issued by the Republic through its fiscal agent, the Bureau of
Treasury.
Government Securities Eligible Dealer (GSED) is a SEC-licensed securities dealer belonging to
a service industry supervised/regulated by Government (SEC, Bangko Sentral ng Pilipinas or
Insurance Commission) which has met the (a) P100 M unimpaired capital and surplus account;
(b) the statutory ratios prescribed for the industry, and (c) has the infrastructure for an electronic
interface with the Automated Debt Auction Processing System (ADAPS) and the official Registry
of Scripless Securities (RoSS) both of the Bureau of the Treasury (BTr) using Bridge Information
Systems (BIS), and acknowledged by the BTr as eligible to participate in the primary auction of
government securities. A List of GSEDs are included in this Primer for ease of investors who
wish to buy government securities.

LIST OF GOVERNMENT SECURITIES ELIGIBLE DEALERS (GSEDs)

(as of April 05, 2014)

A. BANKS
1 Asia United Bank
2 Asiatrust Development Bank
3 Australia & New Zealand Banking Group Ltd.

4 Banco de Oro Unibank, Inc.

5 Bank of Commerce C. Non-Banks(without Quasi-Banking Licence)
6 Bank of the Philippine Islands
7 BDO Private Bank 36 BDO Capital and Investment Corporation
8 China Banking Corporation
9 CTBC Bank (Phils) Corp. (formerly Chinatrust (Phils))
10 Citibank, N.A. 11 Citistate Savings, Inc.
12 Deutsche Bank
13 Development Bank of the Philippines
14 East West Banking Corporation
15 Hongkong and Shanghai Banking Corp.,Ltd.
16 ING Bank
17 JP Morgan Chase Bank, National Association
18 Land Bank of the Philippines
19 Maybank Philippines, Inc.
20 Metropolitan Bank and Trust Company
21 Philippine Bank of Communications
22 Philippine Business Bank
23 Philippine National Bank
24 Philippine Veterans Bank
25 Planters Development Bank
26 Rizal Commercial Banking Corp.
27 Robinsons Bank Corporation
28 Security Bank Corp.
29 Standard Chartered Bank
30 Sterling Bank of Asia, Inc.
31 Union Bank of the Philippines
32 United Coconut Planters Bank
B. NON-BANKS(WITH QUASI-BANKING LICENSE)
33 AB Capital and Investment
34 BPI Capital Corporation\
35 First Metro Investment Corporation
C. NON-BANKS(WITHOUT QUASI-BANKING LICENCE)
36 BDO Capital and Investment Corporation
37 VICSAL Investment, Inc.
The Philippine Government issues two kinds of government securities (GS): Treasury Bills and
Treasury Bonds, so-called because it is the Bureau of the Treasury which originates their sale to
the investing public through a network of licensed dealers. Government agencies, Local
Governments and government-owned or controlled corporations may float securities but these
are not labeled as Treasuries. Government securities are no longer certificated, they are known
as "scripless", just like in USA, Canada, China and Korea. GS discount or coupons are subject

to twenty percent final income tax which is withheld upon floatation of Treasury Bills or upon
payment of the coupon for Treasury Bonds. No other tax is imposed on the secondary market
buyer.

GS discount or coupons are subject to twenty percent final income tax which is withheld upon
floatation of Treasury Bills or upon payment of the coupon for Treasury Bonds. No other tax is
imposed on the secondary market buyer because they only have face values. They are sold at a
discount wherein the purchase price is less than the face value ( P<FV). The sole source of their
return is the difference between their purchase price and their face value.

Tenors of Treasury Bills

Short-term (91, 182 and 364 days)

Yield determined at auction

Issued on a discount basis two days following the auction

The number of days are based on the universal practice around the world of ensuring that
the bills mature on a business day. Treasury Bills are quoted either by their yield rate,
which is the discount, or by their price based on 100 points per unit. Treasury Bills which
mature in less than 91-days are called Cash Management Bills (e.g. 35-day, 42-day).