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

Hanoi (VNA) – The State Treasury of Vietnam mobilised over 44.4 trillion VND (1.95 billion USD) 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 3.5 trillion VND (154 million USD) worth of G-bonds with different maturities.

Three tenures were offered at the HNX, including seven-year and 20-year bonds valued at 1 trillion VND each (44 million USD), and 10-year bonds valued at 1.5 trillion VND (66 million USD).

A total 1.35 trillion VND (59.4 million USD) 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. 200 billion VND 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 1.05 trillion VND 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 100 billion VND 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 180 trillion VND (7.92 billion USD), with the focus being on long-term maturity and keeping the interest rate at low levels.

G-bonds worth 159.9 trillion VND (7.03 billion USD) 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.-VNA