Vietnam Mobilizes US$31.25Mln Via Treasury Bonds Auction at 7.15 per cent Yield

Vietnam has mobilized VND500 billion (US$31.25 million) from auctioning treasury bonds with the annual coupon 7.15 per cent on Hanoi-based Securities Trading Center, local New Hanoi Online said Wednesday.

 

Among six bidders who registered for the auction- held on June 1- with the total offered value of VND1.7 trillion and the yield ranging from 7.05 per cent to 8.0 per cent, three won the tender with ceiling coupon of 7.15 per cent, up 0.1 per cent compared with that in the previous issue, a HASTC official said.

 

The bonds have 5-year maturity with par value of VND100,000 (US$6.25), the official said.

 

The State Treasury has raised VND5.46 trillion (US$341.25 million) since the beginning of this year via auctions on HASTC bourse, he noted.

 

According to the Ministry of Finance, Vietnam plans to issue VND22 trillion worth of government bonds this year to fund key transport and irrigation projects

 

The Ministry of Planning and Investment said Vietnam needs some US$140 billion for development investment between 2006 and 2010, of which the home source will generate US$90 billion while the remainder will come from abroad.

 

In 2005, the government raised US$750 million through the international bond market, allocated to the expansion of Vinashin Business Group, which is expected to upgrade the Vietnamese shipbuilding industry into a world power in the next five years. (News Hanoi Online)