2.3 trillion VND raised from Government bonds

09:03 | 03/08/2018 Finance - Banking

The Hanoi Stock Exchange (HNX) raised 2.3 trillion VND (over US$98.7 million) at the latest auction of Government bonds (G-bonds) issued by the State Treasury on August 1.

General Director of the State Treasury Ta Anh Tuan - Photo: State Treasury

The auction aimed to sell 7 trillion VND (US$300.4 million) worth of G-bonds with 5-year, 7-year, 10-year, 15-year, 20-year and 30-year maturity.

Five bidders bought 7-year bonds at 100 billion VND (US$4.29 million) with average yield rate of 3.9 percent/year, the same interest rate with the previous auction (July 25).

Bonds with 10-year term fetched 2.2 trillion VND (over US$94.3 million) with annual interest rate of 4.5 percent, up by 0.02 percent against the previous auction.

There were no successful bids for 5-year, 15-year, 20-year and 30-year bonds.

From the beginning of 2018, the State Treasury mobilised over 92.3 trillion VND (over US$3.96 billion) through G-bond auctions at the HNX.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes from last year thanks to economic growth of more than 6.7 percent and inflation below 4 percent. It expects the value of G-bonds issued this year to reach 180 trillion VND (US$7.92 billion).

Last year, Vietnam sold some 159.9 trillion VND, or US$7.03 billion, worth of G-bonds with average maturity of 13.52 years and annual interest averaging 6.07 percent, down 0.2 percentage points against 2016.

The interest rates of Government bonds have risen lately, after a long period of decline throughout 2017 and the first four months of 2018.

Theo VNA