Vietnam raises US$1.95bn from G-bonds this year

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year. - File Photo

According to HNX, the latest auction was held by the State Treasury on April 18, offering a total of VND3.5 trillion worth of G-bonds with different maturities.

Three tenures were offered at HNX, including seven-year and 20-year bonds valued at VND1 trillion each, and 10-year bonds valued at VND1.5 trillion.

A total of VND1.35 trillion were raised in the auctions, which was below the issuer’s expectation.

Of the three types, the auction of seven-year bonds attracted 15 investors. At least VND200 billion worth of bonds were sold at an average yield rate of 3.43 per cent per year. The rate was the same as that during the previous auction on April 4.

Two auctions of 10-year bonds attracted 16 investors. A combined VND1.05 trillion worth of bonds were sold at the average yield rate of 4.1 per cent per year, 0.05 percentage points higher than that on April 11.

Some six investors attended the auction of 20-year bonds, which raised VND100 billion at the average interest rate of 5.12 per cent per year, an increase of 0.02 percentage points from that of the March 28 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 per cent and inflation of below 4 per cent.

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

G-bonds worth VND159.9 trillion, with an average maturity of 13.52 years, up 4.81 per cent against 2016, were issued last year. The bonds had an average annual interest rate of some 6.07 per cent, down 0.2 percentage points against 2016, according to the Ministry of Finance.