Bidding for G-bonds earns the State $384 million
Bidding for G-bonds earns the State $384 million
The Ha Noi Stock Exchange (HNX) hosted an auction for numerous Government bonds (G-bonds) with different terms: five, 10 and 15 years, on February 5.
The bonds attracted total bids worth VND10 trillion (US$470 million), of which VND6 trillion ($282 million) were for bonds with a five-year term, VND1 trillion ($47 million) was for bonds with a 10 year-term and 3 trillion ($141 million) were for bonds with a 15 year-term.
At the bidding session, 19 customers joined the bid for five-year bonds. Finally, VND4.544 trillion ($213.8 million) worth of bonds were sold at an interest rate of 5.5 per cent, 0.02 per cent higher than the previous bidding session held on January 29.
The bidding for 10 year-term bonds attracted nine bidders, who fixed the interest rate between 6.45 and 7.8 per cent per year. As a result, VND625 billion ($29.4 million) in bonds were sold at an interest rate of 6.5 per cent, equivalent to an interest rate seen during the previous session.
Bonds with 15-year terms lured 10 bidders, who bought a total of VND5.1 trillion ($240 million) worth of bonds at an interest rate of 7.3 to 8.5 per cent. The bid winners paid an interest rate of 7.59 per cent per year, 0.01 per cent per year higher, compared with the session on January 29. As much as VND3 trillion worth of bonds were sold.
Data from HNX revealed that after four bidding sessions during the first two months of 2015, the State Treasury has earned VND25.569 trillion ($1.2 billion) from issuing government bonds.
