Guaranteed bonds mobilise 150 billion VND

ABO/VNA – The Vietnam Bank for Social Policies (VBSP) raised 150 billion VND (6.5 million USD) at the latest auction of Government-guaranteed bonds on the Hanoi Stock Exchange (HNX) held on July 23.

The Vietnam Bank for Social Policies (VBSP) raised 150 billion VND (6.5 million USD) at the latest auction of Government-guaranteed bonds on the Hanoi Stock Exchange (HNX) held on July 23 (Illustrative photo: VNA)

The amount was mobilised from five-year bonds with an annual interest rate of 4.1 percent, which was 0.05 percent higher than that of the most-recent auction on July 16.

The auction had planned to sell 2 trillion VND (86.63 million USD) worth of bonds with five-year, 10-year, and 15-year maturity. However, there were no successful bids for the 10-year and 15-year bonds.

Since the start of 2018, the VBSP mobilised 350 billion VND (15.17 million USD) worth of guaranteed bonds through auctions on the HNX.

Government-guaranteed bonds are bonds issued by authorised entities to mobilise capital for investment projects as appointed by the Prime Minister.

According to the HNX, the State Treasury of Vietnam raised about 4.4 trillion VND (more than 190.7 million USD) in the last Government bond (G-bond) auction of June. The amount brought the total funds collected from G-bond auctions in the first half of 2018 to nearly 74.6 trillion VND (3.23 billion USD).

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

Last year, Vietnam sold some 159.9 trillion VND, or 7.03 billion USD, 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 G-bonds have been on the rise lately, after a long period of decline throughout 2017 and the first four months of 2018.

(Source: VNA)