Vietnam raises US$175.6 million in government bond auction

VIETNAM’s State Treasury raised US$175.6 million in a government bond auction on Wednesday (Nov 20), down from the US$244 million raised last week.

The uptake was also lower, a filing to the Hanoi Stock Exchange showed, with 44.6% of the offer sold compared with 56.4% at last week’s auction.

Vietnam is seeking to raise US$15.8 billion from government bond sales this year, mainly to fund its public investments, among the key drivers of economic growth.

It has raised 314.7 trillion dong (S$16.5 billion) of that so far this year, according to data from the exchange.

At Wednesday’s auction, the treasury sold 1 trillion out of 2.5 trillion of 5-year bonds offered at an a coupon of 1.92%. it also sold 3 trillion of 5.5 trillion of 10-year bonds available at a coupon of 2.66%.

On the corporate front, Vietnamese companies have raised 355.6 trillion dong from bond sales this year up to Nov 15, according to bond market association data.

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

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The value of corporate bonds maturing in the remainder of 2024 is 52.8 trillion dong, 42.3% of which belongs to the real estate sector and 12.1% to the banking sector, it added. REUTERS