Electricity of Vietnam National Power Transmission Corporation (EVNNPT) issues VND1.5 trillion in bonds amid strong interest from investors.
The State-run Electricity of Vietnam National Power Transmission Corporation (EVNNPT) issued VND1.5 trillion ($70.5 million) worth of five-year bonds early this week.
The bonds were issued with a marginal interest rate of 2.3 per cent per year, which is the lowest for corporate bonds issued over the last five years. This was one of only a few issuances by a State-owned enterprise in 2014, so attracted the attention of numerous investors, including commercial banks, insurance companies, fund management companies, finance companies, and securities companies, and was a positive sign for the development of the domestic corporate bond market.
The overwhelming success of the issuance came from EVNNPT's reasonable and flexible policy on the timing, volume and interest rate of the issuance. The decision was made based on accurate assessments of the macro-economy and the country's financial market.
The success also reflects the prestige of EVN in general and EVNNPT in particular in domestic and international markets, creating better conditions for EVNNPT to raise capital and invest in the development of national electricity transmission in the future.