Vietnam raises 4.1 trillion dong in bond auction; coupons hit year's high

VIETNAM’S State Treasury raised 4.1 trillion dong (S$218 million) in an auction where it had offered 8.5 trillion dong of government bonds at the Hanoi Stock Exchange on Wednesday (Jun 12), with coupons hitting fresh highs for the year.

The amount is higher than the US$83 million raised at an auction last week, a bourse filing showed. The uptake was also higher, with 47.9 per cent of the offer sold, up from 23.6 per cent in last week’s auction.

Vietnam has so far this year raised 133.4 trillion dong from government bond sales, according to data from the exchange.

The South-east Asian country is aiming to raise 400 trillion dong from government bond sales this year to help fund its public investments, one of the key drivers of economic growth.

The State Treasury sold all of the one trillion 5-year bonds offered on Wednesday, with a coupon of 1.83 per cent. It sold three trillion of the 4.5 trillion 10-year bonds offered, with a coupon of 2.74 per cent. The respective coupons were 1.8 per cent and 2.71 per cent at the previous auction.

It sold only 70 billion out of the 500 billion dong of 30-year bonds offered, with a coupon of 3.1 per cent, and failed to offload any of its 15 and 20-year bonds offered.

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