Nearly $850m raised from Gov’t bonds in January
Capital raised from G-bonds rose 63.3 per cent in January.
According to the Ha Noi Stock Exchange (HNX), which organised the auctions, 97.3 per cent of G-bonds offered at the auctions were sold out.
The coupon rates were 4.30 per cent a year for five-year term bonds, 4.35 per cent for seven-year term bonds and 4.38 to 5.15 per cent for 10-year term bonds. The rates for 15-year term bonds were 4.5-5.2 per cent a year, while those for 20-year term bonds and 30-year term bonds were 5.2 per cent a year and 5.4 per cent a year, respectively.
Compared to late 2017, the rates were lower for all terms, ranging from 0.22-0.82 per cent.
In the secondary market, the total volume of G-bonds sold by the outright method reached more than 1.06 billion, worth VND118 trillion ($5.2 billion), up 4.3 per cent in value over December 2017.
Trading volume through repurchase agreements was 1.15 billion bonds, worth more than VND118 trillion, a decrease of 2.6 per cent in value compared to the previous month.
Foreign investors also made outright purchases of more than VND8.9 trillion and outright sale transactions of VND8.1 trillion. They made repo buys of over VND220 billion and repo sales of over VND247 billion in the first month of this year.
The National Financial Supervisory Commission predicted that the G-bond market in 2018 will see modest change 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 ($7.93 billion), with the focus being on long-term maturity and keeping the interest rate at low levels.
G-bonds worth VND159.9 trillion ($7.04 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 interest rate of some 6.07 per cent a year, down 0.2 percentage points against 2016, the Ministry of Finance reported.
In 2017, the Government had approved a roadmap for the development of the bond market from 2017 to 2020 with a vision for 2030, in which the outstanding debt in Viet Nam’s bond market is targeted at 45 per cent of the total gross domestic product (GDP) in 2020 and some 65 per cent of the GDP in 2030.
Under the plan, the outstanding debt of the G-bond, Government-guaranteed bond and municipal bond markets is aimed at some 38 per cent of the total GDP in 2020 and 45 per cent in 2030. The corporate bond market’s outstanding debt is expected to reach some 7 per cent of the GDP in 2020.
The roadmap aims at stable development, larger size and better quality of Viet Nam’s bond market, which should have more perse products, proactively integrate into the global market and gradually operate in line with international standards and practices.
For this, Viet Nam is set to complete its policy framework for the bond market, develop the primary and secondary markets, persify investors and facilitate intermediary institutions and market services.
Related News
The Government plans to borrow maximum of VND676,057 billion and repay debt of VND453,990 billion in 2024
10:39 | 04/04/2024 Finance
Personal Income Tax Law to be amended in 2025
10:42 | 04/04/2024 Finance
Good management of public debt creates room to implement expansionary fiscal policy
10:06 | 19/03/2024 Finance
Widely applying risk management in specialized inspection of goods
09:48 | 19/01/2024 Customs
Latest News
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
More News
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Central bank plans to auction gold bars on April 22
18:00 | 21/04/2024 Finance
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Your care
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance