Vietnam raises $240m through auction of govt bonds

Vietnam raises $240m through auction of govt bonds

Hanoi, Vietnam. Photo by Wina Tristiana on Unsplash

Vietnam’s State Treasury raised 6.1 trillion dong ($240 million) in an auction where it had offered 12 trillion dong of government bonds at the Hanoi Stock Exchange on Wednesday.

The amount is lower than the $451.5 million raised last week, a bourse filing showed. The uptake was also lower, with 51% of the offer sold, down from 67% in last week’s auction.

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

So far this year, it has raised 172.8 trillion dong from government bond sales, according to data from the exchange.

In Wednesday’s auction, the State Treasury sold 5.4 trillion dong out of the 10 trillion dong of 10-year bonds offered with a coupon of 2.74%.

It sold 700 billion dong out of 1 trillion dong of 15-year bonds offered with a coupon of 2.95%. It offered 500 billion dong each of 5- and 30-year bonds, but did not sell any.

On the corporate front, companies in Vietnam had raised 140.4 trillion dong from bond sales this year up to July 5, according to data from the Vietnam Bond Market Association.

The total value of corporate bonds redeemed before maturity was 84 trillion dong up to July 5, down 33.7% from a year earlier, the association said.

The total value of corporate bonds maturing in the remainder of 2024 is 135 trillion dong, 42.4% of which belongs to the real estate sector and 14.4% to the banking sector, it added.

Reuters

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