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Vietnam Development bond sales fail on yield demands
Vietnam Development Bank, the state-owned lender that raises money for public projects, failed to sell VND1 trillion (US$56 million) of bonds as investors demanded higher yields than the government allowed it to pay.
The Hanoi-based lender offered a maximum coupon of 9.3 percent for a sale of 10-year notes and 8.7 percent for two-year securities, according to a faxed statement from the Hanoi Stock Exchange, where the auction took place on Friday.
Bidders sought yields of 9.9 percent for the 10-year bonds and 9.8 percent for the two-year notes, the statement said.
The bank, one of Vietnam's two policy lenders, issues bonds on behalf of the government to fund the construction of roads, bridges, schools, irrigation projects and major power plants.
At the previous auction on July 17, the bank also failed to sell any of the VND1 trillion of 2-year and 10-year bonds because bidders sought to buy the debt at yields 0.3-1.0 percentage point above the ceiling rates.
thanhnien, Bloomberg
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