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Treasury to mobilise more capital from G-bonds
The state treasury of Viet Nam offloaded more than 92 per cent of the bonds planned for the year as of August 24, according to the Ha Noi Stock Exchange.
On June 30, the treasury has revised its plan to issue more government bonds in 2016 by adding bonds worth another VND30 trillion. So, it aims to issue G-bonds worth VND250 trillion for the whole year under the new plan, as a good capital mobilisation channel after the first half of the year.
As of August 24, the treasury has mobilised more than VND231 trillion (US$10.34 billion). In particular, the exchange said the treasury sold all five-year bonds worth VND3 trillion at a coupon rate of 5.79 per cent per annum, 0.13 per cent lower than that of the previous session on August 17. Following higher demand, it also sold same term bonds of VND900 billion with the same coupon rate.
Similarly, seven-year bonds worth VND3 trillion were sold at a coupon rate of 6.35 per cent per annum, 0.14 per cent lower than the last session. The treasury also sold bonds worth another VND900 billion at the same rate due to demand.
According to the treasury, the sale of bonds of five-year and 15-year terms exceeded the target.
According to the Bao Viet Securities Company (BVSC), the state treasury would soon complete mobilisation plans of government bonds this year and would mobilise more capital from G-bonds in the last few months of the year.
The firm said with less pressure to meet targets, the interest rates of the bonds may fall, thus, making them more attractive to investors.
However, the treasury could not sell any of the 20-year bonds worth VND1 trillion offered in the August 24 auction.
On August 22, the Bank of Social Policy called for tenders for five-year, 10-year and 15-year government guaranteed bonds worth VND1 trillion.
On August 26, the southern Ba Ria-Vung Tau Province will offer five-year bonds worth VND500 billion to collect funds for some priority projects such as Phuoc Hoa Cai Mep Road to connect Cai Mep-Thi Vai Port and Road 51, a canal in Ray River and Vung Tau Hospital in the 2016-2020 period.
Deputy Prime Minister Vuong Dinh Hue welcomed insurance firm AIA's Chairman Mark Edward Tucker on August 25 and said the country had set a bond sale target of 35 per cent of the GDP by 2020, especially bonds with long terms of 15 to 20 years.
He said the AIA Group could invest more strongly in the long-term G-bonds market, while the AIA head reaffirmed their commitment to long-term investment such as G-bonds, infrastructure and the healthcare system.
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