Vietnam sells US$1b in sovereign bonds, sees strong global demand

[HANOI] The Vietnamese government raised US$1 billion via a rare issue of sovereign bonds at an annual coupon of 4.8 per cent, the lowest among its three offshore dollar-dominated debt sales, a Finance Ministry statement said.

The coupon was below Vietnam's initial target of 5.125 per cent per annum, as bids from foreign investors totalled US$10.6 billion, the statement said.

Proceeds from the bonds, the country's first global issue in more than four years, will be used in part for swapping the government's sovereign debts issued in 2005 and 2010 .

The debt sold last week was assigned a provisional rating of (P)B1 by Moody's. The country is rated B1 by Moody's and BB- by Standard & Poor's, and both ratings have a stable outlook.

IFR reported most of the allocations were to US investors, who accounted for 55 per cent. Europe received 28 per cent and the remainder went to Asian buyers. Fund managers accounted for 84 per cent, with banks taking 12 per cent and the rest going to insurance and pension funds.

The new notes traded up to a high of 102 on Friday before settling around 101.5, IFR said.

REUTERS