Over VND56 trillion worth of G-bonds raised so far this year

In the latest auction held on May 16, VND6 trillion (US$263.7 million) worth of G-bonds were offered, including five-year and seven-year bonds valued at VND1 trillion (US$44 million) each, and 10-year and 15-year bonds at VND2 trillion (US$88 million) each. 

At this auction, a total of VND3.98 trillion (US$147.9 million) was raised. Of the four terms, the State Treasury of Vietnam raised VND500 billion (US$21.9 million) worth of five-year bonds with the average yield rate of 3% per year, 0.03% higher than that on May 2.

A total of VND1.9 trillion (US$83.5 million) worth of 10-year bonds was sold at two separate auctions, with an interest rate of 4.23% per year.

Meanwhile, VND1.58 trillion (US$69.4 million) was mobilised at two 15-year bond auctions with an interest rate of 4.58% a year.

No bond was sold at the seven-year bond auction.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year, thanks to the economic growth of more than 6.7% and inflation of below 4%.

The value of G-bonds issued in 2018 is estimated at some VND180 trillion (US$7.92 billion), with the focus being on long-term maturity and keeping the interest rate at low levels.

G-bonds worth VND159.9 trillion (US$7.03 billion) and having an average maturity of 13.52 years, up 4.81 years against 2016, were issued last year. The bonds had an average annual interest rate of some 6.07%, down 0.2 percentage points against 2016, according to the Ministry of Finance.