Over 2 billion USD raised via G-bond auctions so far this year

Staff at the Hanoi Stock Exchange (HNX) organise a G-bond auction.(Photo: VNA)

In the latest auction held on February 20, the State Treasury offered a total of 10 trillion VND worth of G-bonds with different maturities, including five-year bonds valued at 1.5 trillion VND, and 15-year bonds valued at 3 trillion VND and 20-year bonds valued at 500 billion VND. 

At the auction, 3.95 trillion VND was raised, of which 12 investors spent 650 billion VND for five-year bonds at the average yield rate of 3.63 percent per year, down 0.17 percentage points against the previous auction on January 30, 2019; nine investors spent 2.9 trillion VND for 15-year bonds at the average yield rate of 5 percent per year, down 0.03 percentage points against the previous auction on February 13, 2019.

The State Treasury plans to issue five-year to 30-year G-bonds worth 260 trillion VND via auctions in 2019 at an average maturity of some 13 years. 

According to Tran Van Dung, Chairman of the State Securities Commission, there were 573 listed bonds with total value of 1.12 quadrillion VND in 2018, up 10.4 percent year-on-year. Of the figure, the value of G-bonds accounted for 98 percent of the total and the remainder were corporate bonds. 

The market is forecast to have growth potential as its size was equal to 35.2 percent of Vietnam’s total GDP last year, which remained modest compared to other regional and international bond markets such as Malaysia (97.7 percent), Singapore (86 percent), the Republic of Korea (125.7 percent) and Japan (211.4 percent).

The Government has also approved the roadmap for the development of the bonds market by 2020 with a vision for 2030, in which the outstanding debt in the Vietnamese bond market is targeted at 45 percent of the total GDP in 2020 and some 65 percent of GDP in 2030.