Vietnam gov’t raises $10.5 bln from bond sales in Jan-Oct

The State Treasury of Vietnam under the Ministry of Finance mobilized VND256.13 trillion ($10.5 billion) from sales of government bonds in the year to October 31, meeting 64% of the full-year target.

Winning bond yields averaged 3.33% per year while the average term of the notes was 12.4 years, according to the Treasury.

Bond issuances slowed in September and October. In September, the Treasury sold VND19.37 trillion ($790.6 million) worth of g-bonds, down 11.07% from August, resulting in an accumulative amount VND249.88 trillion between January and September, meeting 62.47% of the whole-year plan.

Meanwhile, banks, who are the largest buyers of g-bonds, have been aggressively purchasing 28-day treasury bills issued by the State Bank of Vietnam (SBV) since September 21. As of November 3, the SBV had net withdrawn VND204.65 trillion ($8.35 billion) via this channel, with the aim of preventing further devaluation of the dong.

The State Treasury of Vietnam said it will closely monitor market movements to decide on g-bond issuances in a proper manner to ensure the government’s debt servicing.

In the last quarter of this year, the Treasury plans to issue VND130 trillion ($5.3 billion) worth of government debts with maturities ranging from five to 30 years, and notes of 10 and 15 years, accounting for 73% of the total planned volume.

In a related development, the finance ministry said it collected VND1,398.7 trillion ($57.1 billion) for the state coffers in the 10 months through October, fulfilling 86.3% of the year’s plan but down 9.2% from the corresponding period last year.