Gov’t to mobilize $18 million via dong bonds

Vietnam plans to raise VND300 billion (US$18.2 million) in a government bond auction this week to finance infrastructure projects.

The government has failed to sell debt since late February partly due to market demand for high yields.

The State Treasury will sell the two-year bonds on Friday and issue the debt on July 1 which will mature on July 1, 2010, the Hanoi stock market said in a statement Tuesday.

The proceeds will fund major infrastructure projects such as roads, bridges and ports.

The government failed for the seventh time in a row since late February to sell any debt when it sought to raise VND500 billion worth of two- and three-year bonds on June 13.

Its last successful auction was on February 28 when it raised VN700 billion worth of two-year debt at an annual yield of 7.68 percent.

VNA

>   Foreign currency reserve and state secrets (26/06/2008)

>   What solutions for interest rate and exchange rate problems? (25/06/2008)

>   Two more commercial banks approved to issue bonds and valuable papers (25/06/2008)

>   Vietnam suspends gold imports on trade gap (25/06/2008)

>   ACB offers compensation for gold exchange error (25/06/2008)

>   Dong loan demand seen weakening on high interest rates (25/06/2008)

>   Dong stronger as government may support stocks (24/06/2008)

>   GE Money Vietnam to operate in domestic market (24/06/2008)

>   Exchange rate costing businesses billions VND/day (23/06/2008)

>   Government bond market issues (23/06/2008)