HANOI: Vietnam raised 1.798 trillion dong, equivalent to US$73.78mil, yesterday selling government bonds at an auction on the Hanoi Stock Exchange, down from US$146mil raised last week.
The State Treasury sold one trillion dong worth of 10-year bonds with a 2.2% coupon, 780 billion dong of 15-year bonds with a 3% coupon. There were no takers for its offer of one trillion dong of five-year bonds and 3.45 trillion dong of 15-year bonds.
Vietnam raised 298.5 trillion dong from government bonds, the State Treasury said, with an average tenor of 12.58 years and average coupon of 3.21% per year.
Separately, there were 26 corporate bond issuances by private placement in December with a total value of 16.78 trillion dong, according to data as of Dec 22 compiled by the Vietnam Bond Market Association.
Since the beginning of this year, the total value of issued corporate bonds reached 273 trillion dong via 283 offerings, with 90% of them being private placements, the agency said. Meanwhile, the number of offerings was 420 last year.
Vietnamese regulators in past years have tightened rules on corporate bond issuance and later restricted their refinancing, in some cases forcing issuers to redeem securities. The authorities aimed to limit risk-taking in what has been a highly unregulated sector of the domestic credit market. — Reuters
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