Saturday, December 10 2016

VietNamNews

SBV to offer $404m of treasury bills

Update: February, 01/2016 - 08:03

Officials of the Ha Noi Stock Exchange check at an online bonds bidding. Tomorrow, the central bank will launch three releases of treasury bonds. — VNA/VNS Photo Tuan Anh

HA NOI (VNS) — The State Bank of Viet Nam (SBV) will launch three releases of treasury bills tomorrow worth VND9 trillion (US$403.5 million).

The T-bills are Government bonds issued by the Ministry of Finance with terms of less than one year to assist in financing the State budget, and are an important tool for the central bank to operate monetary policies.

SBV said the bidding on the bills would be combined with competitive and non-competitive interest rates, of which bills with the non-competitive interest rates will not exceed 30 per cent of the total bid volume.

The central bank will offer three types of bills in three sessions on February 2.

Accordingly, the first session will issue bills of VND3 trillion ($134.5 million), with maturities of 13 weeks. Payment must be completed within the day, while the due date is March 5, 2016. The second session will issue bills of VND3 trillion with maturities of 26 weeks. Payment must be performed within the day, while the due date will be August 2, 2016. The third session will issue bills of VND3 trillion with maturities of 39 weeks. Payment must be completed within the day, with a due date of November 1, 2016.

Last year, the treasury issued VND31.13 trillion ($1.4 trillion) in T-bills.

On January 27, the State Treasury off-loaded VND2.111 trillion ($94.6 million) in 30-year bonds offered on that day, said the Ha Noi Stock Exchange (HNX), the bond auction organizer.

HNX 30-year bonds, the longest term for bonds so far sold in Viet Nam, were sold with a coupon rate of 8 per cent per year, adding that VND2 trillion ($89.6 million) in bonds were sold successfully, and the treasury offered another VND111 billion ($4.97 million), selling all in extra bidding that same day.

Meanwhile, the treasury only sold VND523 billion ($23.45 million) of the VND1 trillion ($44.84 million) three year bonds offered, the most attractive G-bonds in the market with a coupon rate of 5.78 per cent per year.

HNX said the treasury also offered VND3 trillion in five year bonds that day and sold VND2.4 trillion ($107.6 million) at a coupon rate of 6.58 per cent per year.

The exchange noted that the treasury mobilised VND10.776 trillion ($482.5 million) in G-bonds in January. In all 2016, the treasury plans to issue VND220 trillion ($9.86 billion) in G-bonds. — VNS



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