Call to increase coupon on urban bonds

The ceiling coupon rate of urban bonds of HCM City in April was lower than the end of 2005 by 0.2% per annum for all terms whereas the rate of G-bonds remained unchanged.
Due to the low ceiling coupon rate, HCM City’s urban bonds have yet to attract investors’ attention.
The HCM City People’s Committee has requested the Ministry of Finance to increase the urban bond coupon rate to equal the G-bond rate plus the amplitude of 0.3% per annum for three types of urban bonds in the maturity of five, ten and 15 years.

 

Category: Finance