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Vietnam's State Treasury raised USD 232 million through its weekly government bond auction, marking a notable improvement from the previous week's auction as investor participation strengthened. The auction recorded a higher subscription rate, with nearly half of the bonds offered being sold. Strong demand was seen for five-year and 10-year bonds, while longer and shorter-tenure securities received limited interest. The government continues to rely on bond issuances to meet its annual fundraising target, with more than one-third of the planned amount already mobilised this year.
Vietnam's State Treasury raised 6.1 trillion dong (USD 232 million) through its weekly government bond auction, showing stronger investor participation compared to the previous week's auction, when it had raised around USD 116 million.
According to a filing by the Hanoi Stock Exchange, investor demand improved during the auction, with 47% of the bonds offered being successfully sold, compared with a subscription rate of 23% in the previous week's auction.
The treasury sold 3 trillion dong worth of five-year government bonds against the 4 trillion dong offered. These bonds were issued at a coupon rate of 4.18%. It also sold 3 trillion dong worth of 10-year bonds from the total 7 trillion dong offered, with a coupon rate of 4.35%. For the 30-year tenure, the treasury managed to sell 100 billion dong out of the 500 billion dong offered at a coupon rate of 4.59%.
However, there was no demand for the combined 1.5 trillion dong worth of three-year and 15-year government bonds offered during the auction, resulting in no sales in these categories.
Vietnam has set a target of raising 500 trillion dong through government bond issuances during the current year. So far, the State Treasury has mobilised more than 183 trillion dong, indicating that additional auctions will be required over the coming months to achieve the annual borrowing goal.
Apart from government borrowing, Vietnam's domestic bond market has also remained active. According to bond market data available until the past week, Vietnamese companies had collectively raised 272 trillion dong through bond issuances this year, reflecting continued activity in the country's debt market alongside government fundraising efforts.
Source Reuters
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