Gov't sells 1.15 billion USD bonds in February

The Government raised more than 24.5 trillion VND (1.15 billion USD) from bonds on the primary market in February, a drop of 12.2 percent from January, the Hanoi Stock Exchange reported.
The Government raised more than 24.5 trillion VND (1.15 billion USD)from bonds on the primary market in February, a drop of 12.2 percentfrom January, the Hanoi Stock Exchange reported.

In the 16auctions held on the northern bourse last month, the State Treasuryoffloaded bonds worth almost 23 trillion VND (1.07 billion USD) and theVietnam Bank for Social Policies sold bonds worth 1.6 trillion VND (75million USD).

According to the exchange, five-year bonds garneredthe most attention in terms of bids and calls, accounting for 62.5percent of the bonds sold last month.

Coupon rates declined inall types of bonds. Three-year bonds were sold at coupon rates between5.1-5.24 percent annually, down 0.33 percent from January.

Theinterest rates paid on five-year bonds also decreased by 0.67 percentfrom the previous month, selling between 5.29-5.95 percent annually. Thecoupon rates of 10-year bonds were 6.48-6.5 percent annually, down 0.02percent, and 15-year bonds were 7.5-7.59 percent annually, down 0.41percent.

In the secondary market, the total volume of outrighttrading in February amounted to 318.5 million bonds, worth 34.1 trillionVND (1.6 billion USD), of which sales of Government-backed bondsaccounted for 2.3 trillion VND (107.5 million USD).

The tradingvolume by repurchase agreements (repos) was 92.3 million bonds,equivalent to the value of 9.3 trillion VND (434.6 million USD). Reposof Government-backed bonds constituted 2.2 trillion VND (102.8 millionUSD) of the total.

Foreign investors focused their activity tooutright trading with their buy value amounting to 7.71 trillion VND(360.3 million USD) while the repos sales were just 340 billion VND(15.9 million USD).

According to the Hanoi exchange, total salesof Government bonds for 2015 have so far reached 44.323 trillion VND(2.07 billion USD), of which the State Treasury of Vietnam raised 40.37trillion VND (1.9 billion USD) and the Vietnam Bank for Social Policiessold bonds worth 3.953 trillion VND (185.5 million USD).-VNA

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