Over VNĐ10 trillion raised from G-bonds in February

22:39 | 02/03/2018
The Government mobilised more than VNĐ10 trillion (US$440.5 million) through six G-bond auctions in February, down 48 per cent against the previous month.
over vnd10 trillion raised from g bonds in february
The Government mobilised more than VNĐ10 trillion (US$440.5 million) through six G-bond auctions in February.

According to Hà Nội Stock Exchange, which organised the auctions, 85 per cent of the bonds on offer were sold out.

The coupon rates of five-year term bonds and seven-year term bonds were 3.05 per cent and 3.4 per cent, respectively. Successful bidders of 10-year term bonds would enjoy an interest rate of 4-4.35 per cent per year, while the coupon rate of 15-year term bonds ranged from 4.4-4.5 per cent.

Compared to January, the annual interest rates of five-year, seven-year, 10-year and 15-year bonds fell 1.25, 0.95, 0.38 and 0.1 percentage points, respectively.

On the secondary market, the total volume of G-bonds sold by the outright method reached over 645 million, worth VNĐ73.9 trillion ($3.25 billion), down 37 per cent in value from January.

Trading volume through repurchase agreements (repos) was more than 806 million bonds valued at VNĐ83.8 trillion ($3.86 billion), decreasing 29 per cent in value from January. Foreign investors also made outright purchases of more than VNĐ4.3 trillion ($189.2 million) and outright sale transactions of more than VNĐ4 trillion ($176 million). They made repo buys of over VNĐD207 billion ($9.1 million) and repo sales of over VNĐ205 billion ($9.02 million).

Early this year, the State Treasury had issued Letter No.420/KBNN-QLNQ on the plan for G-bond issuance for the first quarter of 2018. Accordingly, the total expected issuance amount for the quarter is VNĐ45 trillion, of which 10-year and 15-year bonds will account for VNĐ11 trillion each, 30-year bonds will make up VNĐ8 trillion and five-year, seven-year and 20-year bonds will represent VNĐ5 trillion each.

The value of G-bonds issued in 2018 is estimated at some VNĐ180 trillion ($7.93 billion), with the focus being on long-term maturity and keeping the interest rate at low levels.

According to reports of the Ministry of Finance, G-bonds worth VNĐ159.9 trillion ($7.04 billion), with 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 per year, down 0.2 percentage points against 2016.

VNA

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