As of on October 15, the State Treasury had sold around VND220 trillion worth of G-bonds, meeting over 92% of the year’s target set by the Ministry of Finance. The figure was around 60% higher than the same period last year.

Vietnam Development Bank and Vietnam Bank for Social Policies have also reported positive bond sales this year.

According to the Finance Ministry, the State Treasury mobilized VND12 trillion worth of G-bonds in September, down over 23% over the previous month but 26% higher than the same period last year.

The G-bond market saw many advantages in January-September thanks to the more active participation of investors, the ministry said.

Last month, each session attracted 10-14 investors to bid for every tenor. Investors bid for VND32 trillion versus VND12 trillion put up for sale.

In the coming time, the ministry will focus on issuing long-term bonds from five to 15 years to ease debt payment pressure in the next one or two years. It will also strengthen government debt restructuring solutions amid the unfavorable market.

In fact, long-term bonds have sold well in recent times. Last month, the State Treasury halted issuing bonds with tenors of three years or shorter while focusing on tenors of five, 10 and 15 years.

The ratio of three-year bonds of the total volume mobilized has declined sharply against 2013.

On Monday, the Hanoi Stock Exchange sold over VND4.24 trillion worth of State Treasury’s bonds. Of which, there was VND345 billion worth of five-year bonds at the winning rate of 4.8% per annum, VND3 trillion of 10-year bonds at 6.19% per annum and VND900 billion of 15-year bonds at 7.05% per annum.
 

Source english.thesaigontimes.vn