Vietnam Govt raises only 50b dong worth of bonds in first week of Q4

In the remaining three months of this year, the State Treasury intends to issue additional 15 trillion dong worth of government bonds.
In the week between October 3 and 7, there was only one auction for G-bond issued by the State Treasury with a total offered volume of two trillion dong for terms of 3-and 5-years.

However, the raised volume remained low with only 50 billion dong for 5-year bond at the winning coupon rate of 12.35 percent per annum, up 0.1 percent p.a. from previous tender on September 30.

In Q4, the State Treasury plans to issue additional 15 trillion dong worth of government bonds under two forms, including auction for bills of exchange via the State Bank of Vietnam (SBV) and tender of bond through Hanoi Stock Exchange (HNX).

Regarding corporate bonds, last week, many companies also reported about bond issuances.

Accordingly, Saigon-Hanoi Securities Joint Stock Co (SHS) announced the resolution of the director board about issuing 350 billion dong worth of bond in one to three phases. The bond will have term of one year.

In the first phase, the company will issue total 250 billion dong at the coupon rate of 20 percent per year. The yield will be paid once when due.

Additionally, Saigon Thuong Tin Real Estate Joint Stock Co (SCR) also announced offering 99 billion dong worth of bond at the face value of one billion dong per bond. The 18-month term bond was issued on October 6, 2011.

These convertible bonds will apply the floating coupon rate and be adjusted monthly.

Meanwhile, on October 5, Construction Development and Investment Joint Stock Corp (DIG) announced successfully offering 350 billion dong worth of bond for the first phase of 2011.

These 3-year term bonds will be converted into shares. The coupon rate will be adjusted once per 12 months. The coupon rate for the first term will be 19.5 percent per annum and it will be the floating coupon rate for following terms.

The bonds were issued on September 30, 2011 and matured on September 30, 2014.

The proceeds from bond issuance will be used to support the company’s working capital. – Source: Vietbiz24.com

Tags: Vietnam banking industry, Vietnam bonds, Vietnam finance, Vietnam financial