Treasury to mobilise more capital from G-bonds

Friday, Aug 26, 2016 15:03

As of August 24, the treasury has mobilised more than VND231 trillion (US$10.34 billion) or more than 92 per cent of the year plan — Photo

HA NOI (Biz Hub) — The state treasury of Viet Nam offloaded more than 92 per cent of the bonds planned for the year as of August 24, according to the Ha Noi Stock Exchange.

As of August 24, the treasury has mobilised more than VND231 trillion (US$10.34 billion). In particular, the exchange said the treasury sold all five-year bonds worth VND3 trillion at a coupon rate of 5.79 per cent per annum, 0.13 per cent lower than that of the previous session on August 17. Following higher demand, it also sold same term bonds of VND900 billion with the same coupon rate.

Similarly, seven-year bonds worth VND3 trillion were sold at a coupon rate of 6.35 per cent per annum, 0.14 per cent lower than the last session. The treasury also sold bonds worth another VND900 billion at the same rate due to demand.

Thus, compared to the revised plan of VND250 trillion in bonds for 2016, which was added another VND30 trillion after the first half, G-bond sale has reached more than 92 per cent.

Bao Viet Securities Company (BVSC) said the state treasury would soon complete mobilisation plans of government bonds this year and mobilise more capital from G-bonds in the last few months of the year.

The firm said thus with less pressure to meet targets, the interest rates of the bonds may fall, thus, making them more attractive to investors.

According to the treasury, the sale of bonds of five-year and 15-year terms exceeded the target. Of bonds with longer term, on the other hand,  the treasury could not sell any of the 20-year bonds worth VND1 trillion offered in the August 24 auction.

Deputy Prime Minister Vuong Dinh Hue welcomed insurance firm AIA's Chairman Mark Edward Tucker on August 25 and said the country had set a bond sale target of 35 per cent of the GDP by 2020, especially bonds with long terms of 15 to 20 years.

He said the AIA Group could invest more strongly in the long-term G-bonds market, while the AIA head reaffirmed their commitment to long-term investment such as G-bonds, infrastructure and the healthcare system. — VNS

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