G-bond sales forecast to hit new highs
Government bond sales by the State Treasury would reach new highs this
year thanks to strong market demand, the Saigon Times Daily reported.
Government bond sales by the State Treasury would reach new highs this
year thanks to strong market demand, the Saigon Times Daily reported.
As of on October 15, the State Treasury had sold around 220 trillion VND worth of G-bonds, meeting over 92 percent of the year’s target set by the Ministry of Finance. The figure was around 60 percent higher than the same period last year.
Vietnam Development Bank and Vietnam Bank for Social Policies have also reported positive bond sales this year.
According to the Finance Ministry, the State Treasury mobilised 12 trillion VND worth of G-bonds in September, down over 23 percent over the previous month but 26 percent higher than the same period last year.
The G-bond market saw many advantages in January-September thanks to the more active participation of investors, the ministry said.
Last month, each session attracted 10-14 investors to bid for every tenor. Investors bid for 32 trillion VND versus 12 trillion VND put up for sale.
In the coming time, the ministry will focus on issuing long-term bonds from five to 15 years to ease debt payment pressure in the next one or two years. It will also strengthen government debt restructuring solutions amid the unfavorable market.
In fact, long-term bonds have sold well in recent times. Last month, the State Treasury halted issuing bonds with tenors of three years or shorter while focusing on tenors of five, 10 and 15 years.
The ratio of three-year bonds of the total volume mobilised has declined sharply against 2013.
On October 13, the Hanoi Stock Exchange sold over 4.24 trillion VND worth of State Treasury’s bonds. Of which, there was 345 billion VND worth of five-year bonds at the winning rate of 4.8 percent per annum, 3 trillion VND of 10-year bonds at 6.19 percent per annum and 900 billion VND of 15-year bonds at 7.05 percent per annum.-VNA
As of on October 15, the State Treasury had sold around 220 trillion VND worth of G-bonds, meeting over 92 percent of the year’s target set by the Ministry of Finance. The figure was around 60 percent higher than the same period last year.
Vietnam Development Bank and Vietnam Bank for Social Policies have also reported positive bond sales this year.
According to the Finance Ministry, the State Treasury mobilised 12 trillion VND worth of G-bonds in September, down over 23 percent over the previous month but 26 percent higher than the same period last year.
The G-bond market saw many advantages in January-September thanks to the more active participation of investors, the ministry said.
Last month, each session attracted 10-14 investors to bid for every tenor. Investors bid for 32 trillion VND versus 12 trillion VND put up for sale.
In the coming time, the ministry will focus on issuing long-term bonds from five to 15 years to ease debt payment pressure in the next one or two years. It will also strengthen government debt restructuring solutions amid the unfavorable market.
In fact, long-term bonds have sold well in recent times. Last month, the State Treasury halted issuing bonds with tenors of three years or shorter while focusing on tenors of five, 10 and 15 years.
The ratio of three-year bonds of the total volume mobilised has declined sharply against 2013.
On October 13, the Hanoi Stock Exchange sold over 4.24 trillion VND worth of State Treasury’s bonds. Of which, there was 345 billion VND worth of five-year bonds at the winning rate of 4.8 percent per annum, 3 trillion VND of 10-year bonds at 6.19 percent per annum and 900 billion VND of 15-year bonds at 7.05 percent per annum.-VNA
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