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Gov’t to sell VND500 billion bonds mid-July
The State Treasury plans to raise VND500 billion (US$30.3 million) at a government bond auction this week, the Hanoi stock market said Monday.
The State Treasury would sell 10-year bonds worth VND300 billion and 15-year bonds worth VND200 billion on July 16 and issue the debt on July 18, the over-the-counter exchange said in a statement.
The proceeds will finance major infrastructure projects such as roads, bridges and ports.
At its latest auction on July 11, the State Treasury failed to sell any of its two-year and three-year bonds worth a combined VND500 billion because no participants joined the auction, the exchange said in a separate statement.
On June 27, the State Treasury sold VND2 billion worth of two-year bonds with a yield of 11 percent, its first success in raising funds from selling government debt after seven auctions since late February which yielded no buyers.
Banks, which often buy government bonds, have been struggling to raise dong funds as the central bank tightened monetary supply by raising interest rates and ordered banks to buy debt to rein in inflation that hit an annual rate of 26.8 percent in June.
The central bank aims to cap Vietnam’s credit growth this year at 30 percent after a surge of 54 percent in 2007.
Thanhnien
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