Vietnam Development Bank fails to sell bonds

Vietnam Development Bank, a state-owned lender that raises money for government projects, failed to sell VND1 trillion (US$56.2 million) of bonds as investors demanded higher yields than the bank was willing to pay.

The Hanoi-based lender offered a maximum coupon of 8.7 percent for the two-year notes and 9.2 percent for the 10-year bonds, according to a statement published Friday on the website of the Hanoi Stock Exchange, where the auction took place.

Bidders sought yields of between 9 percent and 9.3 percent for the two-year securities and demanded 9.4 percent to 9.5 percent for the 10- year debt, the statement said.

Vietnamese government bonds on Friday rose, with the yield on the benchmark five-year note dropping two basis points to 9.33 percent, according to a daily fixing price from 10 banks compiled by Bloomberg. A basis point is 0.01 percentage point.

thanhnien, bloomberg

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