Vietnam raises $1 billion in government bond auction, highest volume this year

Vietnam’s State Treasury raised 26.55 trillion dong ($1 billion) in its weekly government bond auction on Wednesday, the highest volume so far this year and up from $564 million raised last week.

The uptake was also higher, with 86% of the bonds on offer sold, compared with 56% last week, according to a Hanoi Stock Exchange filing.

The treasury sold 6.5 trillion dong out of the 9 trillion dong of 5-year bonds on offer, at a coupon of 4.27%.
It sold all of the 20 trillion dong of 10-year bonds on offer, at a coupon of 4.43%.
It sold only 50 billion dong of the 500 billion dong of 30-year bonds on offer, at a coupon of 4.62%.

It failed to offload any of the combined 1.5 trillion dong of 3- and 15-year bonds on offer.
The government aims to raise 500 trillion dong from bond sales this year. So far it has raised more than 276 trillion dong.Vietnamese companies have raised 398 trillion dong via bonds this year up to September 18, according to bond market association data.

The total value of corporate bonds maturing during the remainder of this year is 75 trillion dong.