Vietnam raises $436 mln in government bond auction

Vietnam's State Treasury raised 10.88 trillion dong ($436 million) in a government bond auction on Wednesday, down from the $633.6 million raised last week.

The uptake was lower, a filing to the Hanoi Stock Exchange showed, with 72.5 per cent of the offer sold compared with 92.1 per cent at last week's auction.

Vietnam is seeking to raise 400 trillion dong ($15.77 billion) from government bond sales this year, mainly to fund its public investments, among the key drivers of economic growth.

It has raised 228.4 trillion dong from the sales so far this year, according to data from the exchange.

Wednesday's auction sold 310 billion of the 500 billion dong worth of 5-year bonds that were offered with a coupon of 1.95 per cent.

It sold 7.27 trillion of 9 trillion dong of 10-year bonds available with a coupon of 2.71 per cent, and 3.25 trillion dong of the 5 trillion dong in 15-year bonds, which had a 2.90 per cent coupon.

It sold only 50 billion of 500 billion dong of 20-year bonds with a coupon of 2.98 per cent.

On the corporate front, Vietnamese companies have raised 212.5 trillion dong from bond sales this year up to Aug. 16, according to bond market association data.

The value of corporate bonds redeemed before maturity was 111.9 trillion dong up to that date, down 27.1 per cent from a year earlier, the association said.

The value of corporate bonds maturing in the remainder of 2024 is 120 trillion dong, 40.1 per cent of which belongs to the real estate sector and 15.9 per cent to the banking sector, it added.