HNX raises $140m from Government bonds in August

G-bond sales decline in April The Saigon Times Daily HCMC – The Hanoi Stock Exchange raised VND30.3 trillion (US$1.35 billion) from 13 government bond auctions in April, an 11.6% decrease compared to the previous month, said the Vietnam News Agency. Short-term bond coupons fell last month, with those for three-year bonds falling 0.01 percentage point to around 5.52-5.55% per year and five-year bonds by 0.09 percentage point to around 6.39-6.4% per annum. The winning coupons for 10-year, 15-year, 20-year and 30-year bonds remained unchanged at 6.94%, 7.65%, 7.75%, and 8% per annum respectively. On the secondary market, G-bond sales via normal trading mode totaled over 434 million bonds worth more than VND45.5 trillion (US$2.04 billion), tumbling 38.5% in value against March. Meanwhile, repo trading reached over 565 million bonds worth over VND53.7 trillion (US$2.4 billion), down 4.1% in value against the previous month.... [read more]

Lending rates to fall gradually By Thuy Trieu - The Saigon Times Daily HCMC - Given the stable macro economy, banks said that they would gradually decrease lending rates in Vietnam dong over the next couple of months with the central bank's support. Pham Duy Hung, general director of Asia Vietnam Commercial Bank, said that his bank now gave loans to corporate customers at about 15% per year. "But if the central bank continues to support State-owned banks to give loans at low rates of about 12-13% per year, joint-stock banks will also follow suit and could only ask for high lending rates from high-risk customers," he said. The general director of another joint-stock bank agreed with Hung, saying that if the central bank wants to pull lending rates down, they must inject cheap capital for banks via open market operations or lower reserve requirements to help reduce input costs. Most banks now offer deposit rates at about 11.5-11.8% per year while lending rates are about 14.5-15.5% at joint-stock banks and 13.5-14.5% at State-owned banks. However, the Government has asked the central bank to lower the lending rate to 12% per year and the deposit rate to 10% per year in the coming time. Nguyen Tri Hieu, a board member of An Binh Commercial Bank (ABBank), said that the lending rate had reduced considerably compared to several months ago but to continue lowering rates, ABBank hoped the central bank would give it support. "Interest rates cannot be decreased immediately. It…... [read more]

By Thuy Trieu - The Saigon Times Daily HCMC – The interest rate is poised to start going down soon as banks’ demand for funds has eased at a time when the credit growth at many banks has skirted the limit set by the central bank, while the consumer price index (CPI) is seen slowing down as well. Do Lam Dien, deputy director of corporate banking at Maritime Commercial Bank, told the Daily that his bank had cut the lending rate for enterprises a couple of days ago but the decrease was about one percentage point only. At this time, Maritime Bank gives loans at round 20%-21.5% per year. Dien said given the slowing CPI growth, the input cost had also tended to fall, so banks can reduce its cost and cut the lending rate to share difficulties with clients. The margin between deposit and lending rates at banks is now less than 3.5%, he added. Meanwhile, Dam The Thai, deputy general director of HCMC Housing Development Bank (HDBank), said that although his bank had not yet decreased the lending rate, it was considering a cut by 5%-10% of its current rates. According to Viet Capital Securities Co., inter-bank rates in Vietnam dong dropped dramatically from last month with overnight rates moving within 12-13% now from their peak of 21-22% in May. “In the primary bond market, we saw a sharp fall in the yields of government bond auction results on June 16 with 3-year and 5-year terms at 12.3%…... [read more]

G-bond sales meet 43.6% of target Truong Nam By Truong Nam - The Saigon Times Daily HCMC – Over VND65.4 trillion was mobilized from government bond sales in the first quarter, meeting 43.6% of the year’s target, according to the State Treasury. This year, the Ministry of Finance intends to raise VND150 trillion from government bond issuance to make up for the State budget deficit, to use it for investment and development Government bond sales have exceeded targets and market expectations for the first quarter. In March, government bond issuance brought in some VND21.6 trillion. Government bonds sold well in the bidding session last week, reflected in the falling winning bond yields. Meanwhile, the cash flow of banks and other financial institutions kept surging in the primary market. The number of bidders and bidding volume both increased sharply, promising that the upcoming government bond bidding sessions will continue to be bustling. The State Treasury in the first quarter mobilized over VND52.8 trillion from government bond auctions, 76% higher than the target for the first quarter and meeting 35% of the year’s target. Vietnam Development Bank obtained more than VND8.5 trillion worth of government bonds via auction, accomplishing 21% of the target for the whole year, while Vietnam Bank for Social Policies got VND1.4 trillion, 8% of the year’s target. Government bonds were also sold via other channels. Bao Viet Securities Co. (BVSC) attributed the success of the government bond bidding sessions in the first quarter to negative credit growth and…... [read more]

SSC supports issuing shares under par value Truong Nam By Truong Nam - The Saigon Times Daily HCMC – The State Securities Commission (SSC) from now until the end of the year will continue to help listed firms in issuance of shares under the par value based on the decisions of such firms’ annual general meetings. Initially, listed enterprises that do not belong to conditional business sectors are allowed to issue shares under the par value if they have sufficient capital surplus to offset the shortfall, said sources from SSC. According to a draft circular guiding issuing shares under par value, one of the conditions is that companies must have enough capital surplus or retained profit to make up for charter capital losses due to the issuance. However, the circular has not been released as it is not aligned with current laws. Therefore, SSC has sought to delay issuance of the circular and will study to supplement the conditions to other legal documents, said SSC chairman Vu Bang. “We are in a tough position. As SSC just implements regulations and doesn’t release legal documents, the capability of solving legal problems is limited,” Bang said. However, SSC has granted approval for several enterprises to issue shares under the par value in recent times. At present, over half of total stocks listed on the two local exchanges have their market prices under the par value of VND10,000 each. Truong Thanh Furniture Corporation (TTF) has recently obtained approval to issue shares under the…... [read more]

G-bond sales hit VND15.7 trillion in May Hong Phuc By Hong Phuc - The Saigon Times Daily Of the total number, the State Treasury posted VND15.5 trillion while the Vietnam Bank for Social Policies raised VND200 billion, according to a report released by HNX. HNX said the G-bond volume sold on the primary market last month increased 19% against the previous month. Coupons of the two-year tenor range from 5.58% to 5.7% per annum, three-year tenor at 6.07-6.2% per annum, five-year tenor at 7.1-7.6% per annum and 10-year tenor at 8.7% per annum. In general, coupons of the three- and five-year tenors dropped against April while those of two-year and 10-year debt papers remained unchanged, the report said. Notably, the State Treasury raised VND96.7 trillion from G-bond issues in the first five months of this year, equivalent to that mobilized in all of 2013. On the secondary market, there were 369 million G-bonds traded with a total value of VND39.2 trillion. Most transactions focused on bonds with the remaining tenors of 12 months, two, three and five years. For the repo method, there were 191 million G-bonds worth over VND19.4 trillion changing hands. Foreigners bought VND8.1 trillion while selling VND11.6 trillion worth of G-bonds given the normal trading mode. Those of the repo mode were VND633 billion and VND447 billion respectively. For the secondary Treasury bill market, there were 4.7 million bills worth over VND457 billion traded in normal mode and two million bills worth over VND190 billion traded in…... [read more]

HNX raises VND586 trillion from G-bond sales Tu Hoang By Tu Hoang - The Saigon Times Daily HANOI - The Hanoi Stock Exchange (HNX) raised VND586 trillion from Government bond auctions in the past five years, a breakthrough in the G-bond market. At the fifth anniversary celebration in Hanoi on June 24, HNX announced the figure surged 75 times compared to 2009. In the secondary market, the total listed value reached VND625 trillion as of May, 17% of the nation’s gross domestic product (GDP). Liquidity of the G-bond market increased 4.5 times from VND366 billion each session in 2009 to over VND1.6 trillion in 2013 and over VND2.5 trillion in the first five months of this year. Speaking at the ceremony, Minister of Finance Dinh Tien Dung told HNX to better mobilize capital to finance the State budget and help restructure public debt. According to a report of HNX, the number of listed firms increased 42% during the period while their value soared by 140%. The bourse has seen 364 listed enterprises with total value of nearly VND90 trillion. Trading value also grew significantly, from VND127 billion a session in the 2005-2009 period to VND530 billion in 2010-2013 and VND768 billion in the first five months of 2014. The UPCoM, the market for unlisted public companies, has seen 147 firms, up 17 times. Market capitalization reached VND28.9 trillion, up seven times versus 2009. HNX, formerly the Hanoi Securities Trading Center, was established in January 2, 2009 given a decision of…... [read more]

HNX to raise VND3-trillion from bonds for Hanoi Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC – The Hanoi Stock Exchange (HNX) will hold an auction for VND3 trillion worth of capital construction bonds on August 15 to raise funds for Hanoi. The bond will be issued at a face value of VND100,000 with a tenor of five years and a fixed coupon. However, bond yields have yet to be announced. Based on the interest rate frame regulated by the Ministry of Finance and the market situation at the time of issuance, the city government will decide the coupon but not lower than that for government bonds and comparable to the interest rates offered by commercial banks. The principle will be paid upon maturity while the interest will be paid annually. Payment sources will come from the capital city’s budget. The city government may buy back the bond before maturity to reduce or restructure its debt. According to HNX, the proceeds will be used to invest in social welfare projects, including key traffic infrastructure. Local authorities will arrange capital for 11 projects scheduled for completion in 2014-2015 and three official development assistance (ODA) projects underway. Last year, Hanoi mobilized VND4.4 trillion from three capital construction bond issues for eight vital projects, HNX said. G-bond sales hit VND23.2 trillion in July * The Hanoi Stock Exchange raised VND23.2 trillion via five government bond auctions last month, according to Vietnamplus. Of the total, the State Treasury mobilized over VND22.9…... [read more]

VND22-trillion G-bonds sold in August The Saigon Times Daily HCMC - The Hanoi Stock Exchange (HNX) mobilized around VND22 trillion from seven government bond auctions last month, according to Vietnam News Agency. Of the total, the State Treasury raised over VND19.5 trillion, Vietnam Bank for Social Policies VND300 billion and Hanoi City’s People’s Committee over VND2.2 trillion. A report of HNX showed that bond mobilization volume on the primary market fell 5% in August against the previous month with coupons going down. The two-year tenor saw coupons down by around 0.17 percentage point to 5.08% per annum, three years by 0.26 percentage point to 5.42-6%, five years by 0.31 percentage point to 6.37-7.26% and 10 years by 0.68 percentage point to 7.8-8%. On the secondary market, G-bond trading volume under normal mode hit more than 447 million units valued at VND47.4 trillion. Trading volume under repo mode was over 260 million units worth over VND26.8 trillion. Foreign buying value registered VND6 trillion while selling was VND6.3 trillion in normal mode. For repo trading, foreign buying value was over VND575 billion while selling value was over VND97 billion. For the secondary treasury bill market, trading volume in normal mode was five million units worth over VND480 billion and that in repo mode was 9.5 million units worth VND898 billion. Treasury bill trading by foreign investors under normal mode was over VND114 billion while there was no foreign transaction in repo mode.... [read more]

Treasury raises VND8 trillion from G-bonds sales The Saigon Times Daily HCMC – The State Treasury mobilized nearly VND8.2 trillion (US$382.8 million) from a Government bond auction at the Hanoi Stock Exchange (HNX) last week, VietnamPlus reports. The agency offered five-year G-bonds worth VND6 trillion, 10-year bonds worth VND1 trillion and 15-year bonds valued at VND3 trillion. Nineteen investors bid for a total volume worth over VND7.9 trillion with annual coupons of 5.2-7%. Closing the auction, the State Treasury got over VND4.5 trillion from selling bonds of this type with the winning coupon of 5.5%, slightly higher than the coupon at the January 29 auction. Meanwhile, 10-year bonds attracted nine investors bidding for a combined VND2.2 trillion and at coupons of 6.45-7.8% per year. At the end of the auction, the bond seller raised VND625 billion with a coupon of 6.5%, the same as that on January 29. Ten investors registered to buy 15-year bonds with a total of VND5.1 trillion and coupons of 7.3-8.5% per annum. Closing the auction, the State Treasury fetched VND3 trillion with the winning coupon of 7.59%, 0.01 percentage point lower than that on January 29. Statistics from the HNX showed that after four G-bond auctions, the State Treasury raised more than VND25.5 trillion.... [read more]

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