Vietnam raises $1.95 billion from G-bond so far this year

21-Apr-2018 Intellasia | VNA | 6:00 AM Print This Post

The State Treasury of Vietnam mobilised over VND44.4 trillion (US$1.95 billion) via government bond (G-bond) auctions in the Hanoi Stock Exchange (HNX) since the beginning of 2018.

According to the HNX, the latest auction was held by the State Treasury on April 18, offering a total of VND3.5 trillion (US$154 million) worth of G-bonds with different maturities.

Three tenures were offered at the HNX, including seven-year and 20-year bonds valued at VND1 trillion each (US$44 million), and 10-year bonds valued at VND1.5 trillion (US$66 million).

A total VND1.35 trillion (US$59.4 million) were raised after the auctions which fell below the issuer’s expectation.

Of the three types, the auction of seven-year bonds drew the attention of 15 investors. VND200 billion worth of bonds were sold at the average yield rate of 3.43 percent per year. The rate was the same as that during the previous auction on April 4.

Two auctions of 10-year bonds attracted 16 investors. A combined VND1.05 trillion worth of bonds were sold at the average yield rate of 4.1 percent per year, 0.05 percent higher than that on April 11.

Some 6 investors attended the auction of 20-year bonds which raised VND100 billion at the average interest rate of 5.12 percent per year, an increase of 0.02 percent from that of the March 28 auction.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year, thanks to the economic growth of more than 6.7 percent and inflation of below 4 percent.

The value of G-bonds issued in 2018 is estimated at some VND180 trillion (US$7.92 billion), with the focus being on long-term maturity and keeping the interest rate at low levels.

G-bonds worth VND159.9 trillion (US$7.03 billion) and having an average maturity of 13.52 years, up 4.81 years against 2016, were issued last year. The bonds had an average annual interest rate of some 6.07 percent, down 0.2 percentage points against 2016, according to the Ministry of Finance. billion-from-gbond-so-far-this-year-373021.vov


Category: Finance, Vietnam

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