Vietnam Proposed Issuing US$4 Bln Government Bonds-Analysts

Vietnam will likely to issue US$4 billion worth of government bonds in the 4 coming years because at least a third of the Southeast Asian country’s debts will mature within the next three years and 90 per cent of which will be due in the next five years, analysts said.

 

Speaking at the seminar Wednesday on Vietnam’s capital markets in Ho Chi Minh City, Dominic Scriven, director of Dragon Capital Group the coupons of the five-year bonds Vietnam issued last year were 7.4 per cent, though not high, they were better than the slumping stock market.

 

Of the total of US$10 billion issued bonds, the State Treasury issued US$4.5 billion worth of two-, three-year bonds.

 

Madhur Mehta from Standards Chartered Bank and Kevin Snowball, general director of PXP Vietnam Asset Management Co spoke on the international capital market outlook for this year and assessing good investment opportunities.

 

During the seminar, organized by the Vietnam-EU Business Forum, which is a collaborative project of Vietnam Chamber of Commerce and Industry, Nguyen Doan Hung, vice chairman of the State Securities Commission noted that the stock market is still attractive for foreign investors.

 

Recently, the State Treasury of Vietnam failed to sell VND1 trillion (US$62.5 million) worth of five-year bonds as bidders sought higher coupon than the level offered, the Hanoi Securities Trading Center announced.

 

Investors sought to buy the bonds at the coupon of 9.5 per cent, much higher than the level of 8.5 per cent offered by the government, the exchange said. (VNS, Young People)