Prudential Vietnam to acquire half of 20-year sovereign bonds
Life insurance giant Prudential Vietnam yesterday officially sealed a deal with the Ministry of Finance (MoF) for a VND3.2 trillion (GBP 100 million) long-term investment of 20-year government bonds (G-Bond) in the presence of the UK’s Prime Ministers David Cameron and his Vietnamese colleague Nguyen Tan Dung.
Under the State Treasury of Vietnam’s plan announced early this month, a total VND6 trillion ($279.7 milliion) – VND7 trillion ($325.58 million) in sovereign bonds would be available to insurers since July 29 until the end of 2015. For the third quarter only, the issued amount would be VND4 trillion ($186.05 million). This is the very first time a 20-year G-Bond has been issued in Vietnam and is a significant development for the country’s bond market.
CEO at Prudential Vietnam Wilf Blackburn told VIR, “We are greatly interested in the offer and have meticulously prepared for the purchasing decision.”
Wilf stressed that the issuance of the longest-tenour bonds ever was a milestone of the Vietnam bond market development, adding that the investment demonstrated its sustainable commitment to economic development in the country.
“We understand the importance of long-term investment to a developing economy like Vietnam,” noted Wilf.
Prudential entered Vietnam with a representative office in 1995 and began operations in 1999. As a leading life insurer in the country, the company operates the nationwide distribution network comprising seven bank partners, over 230 customer services centres and branch offices across 63 cities and provinces of Vietnam.