Vietnam will issue VND220 trillion (US$9.82 billion) worth of sovereign bonds this year

by Lobo Sat 23 Jan 2016, 1:13 am

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Vietnam will issue VND220 trillion (US$9.82 billion) worth of sovereign bonds this year

by Lobo Sat 23 Jan 2016, 1:13 am

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January 22, 2016

Vietnam will issue VND220 trillion (US$9.82 billion) worth of sovereign bonds this year, down 14 percent from last year, the state treasury announced at a meeting on Thursday.

It said 45 percent of the debts will have a maturity of five years and 25 percent with terms of more than 10 years. The rest will be short-term bonds of three years.

The agency, under the Ministry of Finance, said it will also issue zero coupon bonds, which offer deep discounts instead of interest payments, once every quarter. The value of these bonds has not been disclosed.

In the latest auction on Wednesday, Vietnam's sovereign bonds with maturities of 5-20 years were sold with coupon yields ranging between 5.7 and 7.75 percent, the Hanoi Stock Exchange has reported.

So far, the government has allowed 21 investors to bid for sovereign bonds, including ANZ and 13 local banks. Others are four securities companies and two insurance firms.

Vietnam raised VND256 trillion through bonds last year, down 11.3 percent from 2014, according to official figures.

The average maturity was 6.98 years, about two years longer than the 2014 average. The average yield was 6.23 percent, down from 6.54 percent in 2014.
http://www.thanhniennews.com/business/vietnam-govt-plans-to-sell-98-bln-worth-of-bonds-this-year-report-58486.html