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Banking & Finance

Government bond auction brings in $214.63 million

Released at: 17:27, 30/10/2015

Government bond auction brings in $214.63 million

State Treasury sells 98% of offering with five-year and 15-year terms.

by Hung Nguyen

The Hanoi Stock Exchange (HNX) has announced the results of a government bond auction held on October 28, where VND4.79 trillion ($214.63 million) worth were sold in an offering of VND4.9 trillion ($219.56 million), or some 98 per cent.

The State Treasury was the issuer.

The offering came in two terms: VND3.9 trillion ($174.75 million) in five-year terms and VND1 trillion ($44.81 million) in 15-year terms.

The first auction of five-year bonds offered VND3 trillion ($134.43 million), with 18 participants making placements of VND5.54 trillion ($248.24 million) with yields placed from 6.57 to 7.2 per cent per annum. All were sold, with a winning yield of 6.63 per cent per annum, or 0.02 per cent lower than at the last similar auction.

The second auction offered VND900 billion ($40.32 million) and had five participants. All were sold, with a winning yield also of 6.63 per cent per annum.

There were three participants in the 15-year bond auction, with a total placement of VND912 billion ($40.86 million) and yields placed of 7.65-8.50 per cent per annum. The auction sold VND892 billion ($39.97 million) worth of bonds, with a winning yield of 7.65 per cent per annum, the same as at the last similar auction.

Since beginning of the year the State Treasury has sold VND109.71 trillion ($4.91 billion) worth of government bonds.

According to the National Financial Supervisory Commission (NFSC), the target of mobilizing VND250 trillion ($11.2 billion) in government bonds this year will be difficult to achieve and it predicts only VND160 trillion ($7.16 billion) will be raised. It suggested bond terms and yields be diversified to make them more attractive.

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