Government raises 17.5tr dong worth of G-bonds in three weeks

Hanoi Stock Exchange (HNX) has recently reported the auction results of G-bonds issued by the State Treasury held on late June 23 via the northern bourse whereby the State Treasury offered seven trillion dong worth of G-bonds for 2-year term (2.5 trillion dong), 3-year (2.5 trillion dong) and 5-year (two trillion dong).
Accordingly, as for 3-year bond, there were 14 bidders and the winning coupon rate was 12.3% per annum (p.a.), equaling to the yield in the tender on June 16, 2011, the total winning volume was 2.5 trillion dong or the successful ratio at 100%.

For five-year bonds, there were 10 bidders with the wining coupon rate of 12.1% p.a.(down 0.2% from the previous tender). The winning volume was two trillion dong or successful ratio at 100%.

For 2-year term, there were nine bidders with the winning coupon rate of 12.4% p.a. (falling 0.02% from the tender on June 16, 2011). The winning volume was over 2.308 trillion dong, equaling to a successful ratio of over 90% for the second consecutive tender for 2-year bond.

Totally, in this bond auction, the State Treasury raised over 6.808 trillion dong, equaling to the successful ratio of 97.25%.

Thus, in recent five consecutive tenders, the State Treasury has reached successful tender ratio of over 90% with the decreasing coupon rate.

From early June so far, the State Treasury has raised about 17.5 trillion dong. This figure is higher than the volume of the whole Q1 of about 16 trillion dong. The yield continued to fall.

This year, the State Treasury expects to raise about 85 trillion dong worth of G-bonds. – Vietbiz24

Tags: Vietnam Government bonds