VN sells US$1 billion-denominated bonds

19:54 | 09/11/2014

VGP – The Ministry of Finance (MoF) recently issued US$1 billion Government bonds of 10-year securities at the interest rate of 4.8% per annum.

This is the first time Viet Nam sold bonds on the international markets at such a low interest rate. The country also issued Government bonds in 2005 and 2010 at the rates of 6.875% and 6.755% respectively.

Vietnamese bonds which reach maturity in 2016 and 2020 are eligible to convert into the new bonds.

Deutsche Bank, HSBC and Standard Chartered Bank were hired for the global bond investor roadshows, the Finance Ministry said on its website.

The Government’s plan on issuing $1 billion worth of international bonds was confirmed by Minister-Chairman of the Government Office Nguyen Van Nen at the Cabinet’s regular meeting in August.

Viet Nam needs extensive funding to spur economic growth, slated to expand 5.8% this year and 6.2% next year./.

By Khanh Phuong