Bank to sell VND600 bil. in bonds on Oct 24

State-run Vietnam Development Bank plans to sell VND600 billion (US$36 million) worth of bonds late this week, the Hanoi stock market said Tuesday, its third attempt to issue the debt.

The bank would auction three-year and five-year bonds on Friday, with each sale intended to raise VND300 billion, for issue on October 28, the exchange said in a statement.

Proceeds often go to construction of highways and bridges, and are used for various other state projects. The bank sells debt on behalf of the government.

Fixings for three-year government bond yields rose to 16.61 percent on Monday from 16.48 percent last Friday but which was still lower than 16.83 percent on October 13.

Last Friday, the bank failed for the second time this month to sell any of the three-year and five-year bonds worth VND600 billion as no bidders emerged for the five-year debt sales while one bidder sought the three-year debt at yields above the bank's ceiling rate.

At the last successful auction on September 26, the Vietnam Development Bank raised VND85 billion from selling 15-year bonds at an annual yield of 15 percent to three bidders.

Thanhnien

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