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Finance ministry plans to issue 200 trillion VND worth of Gov’t bonds

The Ministry of Finance aims to issue 200 trillion VND (8.78 billion USD) worth of Government bonds and develop green Government bonds in 2019.
Finance ministry plans to issue 200 trillion VND worth of Gov’t bonds ảnh 1The total value of Government bonds raised in the past 11 months reached 6.45 billion USD, down a quarter year on year, according to the Hanoi Stock Exchange (Photo: vietnambiz.vn)

Hanoi (VNA) - The Ministry of Finance aims to issue 200 trillionVND (8.78 billion USD) worth of Government bonds and develop green Governmentbonds in 2019.

The goals were set by the finance ministry during a meeting last week held bythe Hanoi Stock Exchange on the status of the Vietnamese bond market in thefinal quarter of 2018.

According to the ministry, the infrastructure of the secondary bond market isset to be improved to raise the quality of bond trading. Other goals includethe publication of issuance dates by quarter for the whole year and theimprovement in quality of bond market developers.

In 2019, the State Treasury will focus on fixed rate bonds and long/shortcoupon bonds and will consider re-issuing the bonds, which had been issued andmatured in previous years, to raise the number of bond codes and to reduce theamount of small-valued bonds. It will also buy back Government bonds withmaturity of less than three months.

The Hanoi Stock Exchange (HNX) will aim to develop a trading platform tobuyback and convert bonds, and offer supportive tools for market developers.

According to the HNX, as of November 30, total value of Government bonds raisedon the northern trading bourse hit 147 trillion VND (6.45 billion USD), down24.3 percent year on year. The figure was equal to half of the full-yeartarget.

Of the figure, the State Treasury raised 137.3 trillion VND worth of G-bonds,down 19 percent year on year and fulfilling 78.4 percent of its full-yeartarget. Insurance companies topped the market by market share as theirpurchases accounted for 66.4 percent of the market’s total.

The total value of the secondary bond market was nearly 1.1 quadrillion VND (48.3billion USD), up 8.2 percent year on year and equal to 20 percent of lastyear’s gross domestic product.

Daily average trading value reached 8.78 trillion VND in the past 11 months,down 3.3 percent year on year. The value of repurchase agreement transactionsaccounted for 53.7 percent of the market’s total, up 4.5 percent year on year.-VNA
VNA

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