Positive growth in the primary bond market

14/04/2016 12:04

The primary bond market of Vietnam has known a positive growth for the first quarter of 2016 with VND 87.016 trillion worth of bonds sold, an increase of 24.4% over the same period last year.

 For the first quarter, State Treasury has successfully mobilized VND73. 366 trillion of bonds, accounting for 96.5% of its quarter plan; Vietnam Bank for Social Policies and Vietnam Development Bank have sold respectively, VND600 billions, VND13. 050 trillion, accounting for 31.1% and 98.1% of their plans.

Government bonds of 5-year and 3-year tenors for their high liquidity and low risk have got the most interest from the investors and the major volume of issuance. VND49.610 trillion of 5-year government bonds were sold, representing 118% of the quarter plan and 67, 6% of the total issued bond value. Next in line is the 3-year bond with an issued volume of VND12.425 trillion, 69% of the plan and 16, 9% of the total issued bond value.
 
 Government and government-backed issued bonds account in average for 75.6% of the plan, higher the same period of the previous year which reached only 73.5%. Except for tranche of 20-year tenor which had less interest from investors buying only 8.6% of the total VND4.000 trillion offered bond value , the sold out average rate for other maturities varied from 75% to over 95%.
 
As the 20-year bonds, 30-year bonds were launched for the first time since the beginning of this year, but this tenor has been attractive to investors, with VND3.541 bond value successfully mobilized out of VND3.7 trillion offered, accounting for 95,7% of the offer.
 
Government-backed bonds with maturities of 3-year and 5-year also had  a high success ration averaging over 92%. /.
 



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