Bonds worth $15 million sold in closed bidding

The Government and HCM City yesterday sold nearly US$15 million worth of bonds through a closed bidding process.

Of VND300 billion ($18.8 million) worth of State Treasury bonds offered for tender, only 63 per cent, worth VND190 billion ($11.88 million), were sold.

This Government bond issue marked the 26th issue of State Treasury bonds this year.

The HCM City Urban Development Fund sold out all of VND50 billion ($3.1 million) worth of bonds it offered for bid.

Both types of bonds have a face value of VND100,000 ($6.25) each, carry terms of five years, and pay interest annually of 8.2 per cent per year for the State Treasury bonds and 8.8 per cent per year for the municipal bonds. Both types of bonds will be listed for subsequent trading on both the Ha Noi and HCM City markets.

Government bonds sold earlier this year successfully mobilised trillions of dong to meet economic development and budgetary needs, a trend the State Treasury expected would continue, the Ministry of Finance announced.

The Ministry of Finance hoped to develop a deeper and more liquid bond market over the next few years.

Source: Vietnam News