The Ministry of Finance successfully issued 1 billion USD ininternational bonds on November 7 after holding roadshows across theworld from October 29 to November 5, according to the ministry’swebsite.
This is the third time Vietnam has mobilisedcapital from the international financial market, after raising a totalof 1.75 billion USD in 2005 and 2010. The ministry held the roadshows inSingapore , Hong Kong, London , Boston , New York and SanFrancisco .
The ministry said on its website that the10-year bond interest rate was 4.8 percent per year lower than theinitially expected offering of 5.125 percent per year.
Thistime around, bond issuance had the lowest interest rate, with 6.875percent per year in 2005 and 6.755 percent per year in 2010.
Earlythis week, Fitch Ratings raised the country's credit rating by one stepfrom B+ to BB-, three notches below investment grade, citingimprovements in the economy and stronger finances.
Moodyupgraded its rating on Vietnam 's senior unsecured bonds to B1 fromB2, citing macroeconomic stability and strengthening in the balance ofpayments. This successful bond sale will help minimise finance risks dueto refinancing and high interest rates from foreign debts.
Thisthird bond sale could help reduce payable interest. This debt wasborrowed at a high interest rate. Though the amount of debt did notchange, Vietnam can reduce the amount of payable interest, accordingto Nguyen Van Nen, Minister and Head of the Government Office.
Refinancing leaders include HSBC, Deutsche Bank and Standard Chartered Bank.-VNA
This is the third time Vietnam has mobilisedcapital from the international financial market, after raising a totalof 1.75 billion USD in 2005 and 2010. The ministry held the roadshows inSingapore , Hong Kong, London , Boston , New York and SanFrancisco .
The ministry said on its website that the10-year bond interest rate was 4.8 percent per year lower than theinitially expected offering of 5.125 percent per year.
Thistime around, bond issuance had the lowest interest rate, with 6.875percent per year in 2005 and 6.755 percent per year in 2010.
Earlythis week, Fitch Ratings raised the country's credit rating by one stepfrom B+ to BB-, three notches below investment grade, citingimprovements in the economy and stronger finances.
Moodyupgraded its rating on Vietnam 's senior unsecured bonds to B1 fromB2, citing macroeconomic stability and strengthening in the balance ofpayments. This successful bond sale will help minimise finance risks dueto refinancing and high interest rates from foreign debts.
Thisthird bond sale could help reduce payable interest. This debt wasborrowed at a high interest rate. Though the amount of debt did notchange, Vietnam can reduce the amount of payable interest, accordingto Nguyen Van Nen, Minister and Head of the Government Office.
Refinancing leaders include HSBC, Deutsche Bank and Standard Chartered Bank.-VNA
