SBV to offer VND8,980,920m of treasury bills

The T-bills are Government bonds issued by the Ministry of Finance with terms of less than one year to assist in financing the State budget, and are an important tool for the central bank to operate monetary policies.

SBV said the bidding on the bills would be combined with competitive and non-competitive interest rates, of which bills with the non-competitive interest rates will not exceed 30% of the total bid volume.

The central bank will offer three types of bills in three sessions on February 2.

Accordingly, the first session will issue bills of VND3 trillion (US$2,989,935 million), with maturities of 13 weeks. Payment must be completed within the day, while the due date is March 5, 2016. 

The second session will issue bills of VND3 trillion (US$2,989,935 million) with maturities of 26 weeks. Payment must be performed within the day, while the due date will be August 2, 2016. 

The third session will issue bills of VND3 trillion (US$2,989,935 million) with maturities of 39 weeks. Payment must be completed within the day, with a due date of November 1, 2016.

Releases of treasury bills

Last year, the treasury issued VND31.13 trillion (US$31,011 billion) in T-bills.

On January 27, the State Treasury off-loaded VND2.111 trillion (US$2,102,958 million) in 30-year bonds offered on that day, said the Hanoi Stock Exchange (HNX), the bond auction organizer.

HNX 30-year bonds, the longest term for bonds so far sold in Vietnam, were sold with a coupon rate of 8% per year, adding that VND2 trillion (US$1,991,808 million) in bonds were sold successfully, and the treasury offered another VND111 billion (US$110,483 million), selling all in extra bidding that same day.

Meanwhile, the treasury only sold VND523 billion (US$521,294 million) of the VND1 trillion (US$996,793 million) three year bonds offered, the most attractive G-bonds in the market with a coupon rate of 5.78% per year.

HNX said the treasury also offered VND3 trillion (US$2,990,380 million) in five year bonds that day and sold VND2.4 trillion (US$2,391,948 million) at a coupon rate of 6.58% per year.

The exchange noted that the treasury mobilised VND10.776 trillion (US$10,725,975 million) in G-bonds in January. In all 2016, the treasury plans to issue VND220 trillion (US$219,188 billion) in G-bonds.