VDB sells 100% of offered government-backed bonds on Feb 22

Vietnam Development Bank sold VND4 trillion worth of 3- and 5-year government-guaranteed bonds, or 100% of the offered value, at the yield of 11.8-11.84% p.a. in an auction held on Feb 22, said the Hanoi Stock Exchange (HNX).

The bid-to-cover ratio was 2.7, including six bidders registered for VND5.73 trillion 3-year bonds, seeking for yields of 11.79-12.15% per annum, and ten bids for VND5.235 trillion worth of 5-year bonds with expected yields ranging from 11.5-12.25% p.a., the bourse said. Fixing for 3-year government bonds was 11.8%, down 0.29% from the latest auction while that for 5-year tenor was 11.84%, down 0.36%.

Banks showed more interest in bonds on speculation that interest rates would decline, said Cao Tan Phat, an analyst at ACB Securities Inc. Besides, several commercial banks with ample liquidity have been structuring their investment portfolios through bonds purchase, experts said.

Year to date, the VDB has sold in total VND13 trillion worth of government-guaranteed debts.

Yield on 3-year government bonds slipped 0.02% to 11.99%, according to a daily fixing compiled by Bloomberg.

Overnight interest rates in the interbank market dived to 10.76% p.a. on February 17 while those for 1-week and 1-month terms on the same day were recorded at 12.71% p.a. and 13.1% p.a., respectively. Average 3-month rate represented the lowest level, staying at 10.24% p.a.

Source Sophie/ StoxPlus

Tags: Vietnam banking industry, Vietnam banks, Vietnam finance

Posted by VBN on Feb 24 2012. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry