Published on June 4, 2019

Over VND 11.9 trillion raised via G-bonds in May


The State Treasury of Vietnam mobilised more than VND 11.93 trillion (USD 512.99 million) through Government bond auctions on the Hanoi Stock Exchange (HNX) in May, down 5 percent against the previous month.

Successful bidders will enjoy an annual yield of 3.7% for five-year bonds, 4.69-4.72% for ten-year bonds, 5.04-5.06% for 15-year-bond, 5.68-5.69% for 20-year bonds, and 5.85-5.88% for 30-year bonds.

Compared with April, the coupon rates of 30-year bonds increased 0.03 percent per annum. Meanwhile, the rates of the remaining bonds fell between 0.01 and 0.03%.

In the G-bond secondary market, the total volume of G-bonds sold by the outright method exceeded 783 million, equivalent to over VND 86.1 trillion (USD 3.7 billion), up 11.5% in value from the previous month.

The trading volume through repurchase agreements (repos) reached more than 888 million bonds, worth more than VND 90.1 trillion (USD 3.8 billion), down 8.4% in value month on month.

Foreign investors made outright purchases worth over VND 2.4 trillion (USD 103.2 million), and outright sales of more than VND 1.2 trillion (USD 51.6 million). Their repo sales were estimated at VND 365 billion (USD 15.6 million).

The State Treasury has so far this year raised nearly VND 93.98 trillion (USD 4.04 billion) via government bond auctions at the HNX, fulfilling over 36% of the yearly target.

It plans to issue G-bonds worth VND 260 trillion (USD 11.18 billion) via auctions in 2019.