Vietnam raises $1 billion in government bond auction, highest volume this year

Business Recorder, citing Reuters, reported that Vietnam's State Treasury collected 26.55 trillion dong, or roughly $1 billion, through a bond sale held on Wednesday. The amount was the biggest of the year so far and above the $564 million taken in the previous week. Demand also strengthened, as 86% of the notes put up for sale found buyers, compared with 56% a week earlier, per a filing with the Hanoi Stock Exchange.

By tenor, the 5-year paper attracted 6.5 trillion dong from a 9 trillion dong offering at a 4.27% coupon. Every bit of the 20 trillion dong 10-year issue was taken up at 4.43%. The 30-year series drew only 50 billion dong against 500 billion dong on offer, carrying a 4.62% coupon, while none of the combined 1.5 trillion dong in 3-year and 15-year securities sold.

Against a full-year target of 500 trillion dong, the government has so far raised more than 276 trillion dong from bonds. Separately, corporate issuers in Vietnam have borrowed 398 trillion dong through bonds so far this year, up to September 18. Corporate bonds worth 75 trillion dong fall due in the rest of the year, as per the bond market association's figures.