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

Vietnam raises US$1.95 billion from G-bond so far this year. (Photo: hanoimoi.com.vn)

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% 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% per year, 0.05% 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% per year, an increase of 0.02% 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% and inflation of below 4%.

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%, down 0.2 percentage points against 2016, according to the Ministry of Finance.