Thursday, August 16 2018

VietNamNews

Government raises US$2.52 billion from G-bonds

Update: May, 24/2018 - 17:00
The State Treasury on Wednesday raised over VNĐ1.6 trillion through G-bond auction. — Photo VNA
Viet Nam News

HÀ NỘI — The State Treasury of Việt Nam has so far this year raised over VNĐ57.6 trillion (US$2.52 billion) through G-bond auctions in the Hà Nội Stock Exchange.

In the latest auction held on Wednesday, the Treasury successfully mobilised more than VNĐ1.6 trillion from an offer of VNĐ6 trillion.

Of the total, VNĐ215 billion was raised from five-year bonds with an annual interest of 3 per cent, the same rate offered in the previous auction held May 16.

Bonds with a 10-year term raised VNĐ700 billion at an annual interest of 4.26 per cent, up 0.03 per cent from the previous auction, while 15-year bonds attracted VNĐ700 billion with an annual interest of 4.6 per cent, marking a 0.02 per cent increase.

There were no transactions involving 20-year bonds.

The State Treasury plans to issue G-bonds

worth VNĐ200 trillion this year, with the focus being on long-term maturity and keeping interest rates low.

Of which, G-bonds with a term of below 5 years will be auctioned at VNĐ20 trillion each, while 5-year bonds and 7-year bonds will have a value of VNĐ30 trillion and VNĐ36 trillion.

The value for 10-year bonds will be VNĐ37 trillion, while 15-year, 20-year, and 30-year bonds will be offered at VNĐ32 trillion, VNĐ20 trillion, and VNĐ25 trillion, respectively.

The National Financial Supervisory Commission predicted modest changes for the G-bond market in 2018, thanks to the economy growing over 6.7 per cent and inflation staying below 4 per cent.

Reports from the Ministry of Finance showed that G-bonds worth VNĐ159.9 trillion with an average maturity of 13.52 years, up 4.81 years against 2016, were issued in 2017. The bonds had an average annual interest rate of some 6.07 per cent, down 0.2 per cent from 2016. — VNS

 

 

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