The State Bank of Vietnam (SBV) plans to reduce excess liquidity in the financial markets by issuing bonds in a move to curb inflationary pressure.
Nguyen Dong Tien, SBV deputy governor, said on August 13 that the central bank plans to continue keeping liquidity in check to rein in inflation, which accelerated to 8.39% year-on-year in July.
His statements came during a press briefing held by Government bodies to announce measures to keep inflation below 8.5% this year. A major cause of rising prices, said Tien, was foreign capital inflows, which the central bank has been forced to eat up in an effort to control the dong exchange rate and increase capital reserves.
“We face a historic problem in the SBV’s monetary management system: foreign capital inflows are too much. We, on several days, purchased up to US $500-600 million daily, while the total amount of foreign capital purchased for the entirety of last year was only US $4 billion,” said Tien.
Capital inflows have been fuelled by foreign direct and indirect investments, official development assistance and overseas remittances.
As a result of SBV buying, foreign currency reserves have doubled since the start of the year and are enough to cover imports for 20 weeks, the Government’s 2010 target, said the deputy governor. Unfortunately, it has also led to excess dong in the market, which helped drive domestic price levels higher.
State Bank officials are now considering issuing short term bonds through open market operations to absorb some of the excess cash floating in the market.
Tien said the central bank would spend the rest of the year withdrawing cash previously used to acquire foreign capital. As much as 82% of cash used to purchase foreign capital in January-July has already been withdrawn from the market.
The Ministry of Finance on August 13 also said it would issue bonds worth roughly VND 18 trillion (US $1.1 billion) in the third quarter to reduce liquidity.
The central bank has already taken steps to cut the amount of capital in the market this year. The State Bank in June doubled reserves requirements for commercial banks to 10%, which took out roughly VND 30 trillion from the market.
Source: VNE
Showing posts with label Bonds. Show all posts
Showing posts with label Bonds. Show all posts
Friday, August 17, 2007
Monday, August 13, 2007
Credit Suisse, and Vinalines in $700 mln loan deal
Global bank Credit Suisse said on Monday it would arrange up to $700 million in credit for Vietnam National Shipping Lines (Vinalines), the first offshore loan for the Vietnamese firm.
Mai Van Phuc, President and CEO of the unlisted Vinalines, said the agreement was part of a memorandum under which it would get from Credit Suisse ratings advisory, fund raising and risk management services, Credit Suisse said in a statement.
The Financial Service Memorandum envisaged the bank to develop a financing programme of up to $1 billion for Vinalines, the first offshore loans for Vietnam's leading shipping firm.
In January Credit Suisse said it had linked up with Vinalines and Vinashin, a leading ship building firm, to work on financing programmes as it ramps up activity in Vietnam's fast-growing economy.
In June it was the rating adviser and sole arranger for a $600 million loan to Vinashin, the global bank said.
Credit Suisse expects Vietnam's economy to grow 9.2 percent this year, after estimated growth of 8.2 percent in 2006.
The forecast is above a Vietnamese government growth projection of 8.5 percent for the whole of 2007.
Source: Reuters
Mai Van Phuc, President and CEO of the unlisted Vinalines, said the agreement was part of a memorandum under which it would get from Credit Suisse ratings advisory, fund raising and risk management services, Credit Suisse said in a statement.
The Financial Service Memorandum envisaged the bank to develop a financing programme of up to $1 billion for Vinalines, the first offshore loans for Vietnam's leading shipping firm.
In January Credit Suisse said it had linked up with Vinalines and Vinashin, a leading ship building firm, to work on financing programmes as it ramps up activity in Vietnam's fast-growing economy.
In June it was the rating adviser and sole arranger for a $600 million loan to Vinashin, the global bank said.
Credit Suisse expects Vietnam's economy to grow 9.2 percent this year, after estimated growth of 8.2 percent in 2006.
The forecast is above a Vietnamese government growth projection of 8.5 percent for the whole of 2007.
Source: Reuters
HCMC to sell 500 bln dong in urban bonds
An investment fund in Vietnam's Ho Chi Minh City will raise a combined 500 billion dong ($31 million) by auctioning three types of urban bonds later this week, the Hanoi's stock exchange said on Monday.
The Ho Chi Minh City Investment Fund for Urban Development Project told the exchange that it would auction on Thursday a 150 billion-dong bond with maturity on Aug. 29, 2012 and a 200 billion-dong bond for maturity on Aug. 20, 2017.
A third bond to be auctioned on the same day would raise 150 billion dong for maturity on Aug. 20, 2022.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.
Source: Reuters
The Ho Chi Minh City Investment Fund for Urban Development Project told the exchange that it would auction on Thursday a 150 billion-dong bond with maturity on Aug. 29, 2012 and a 200 billion-dong bond for maturity on Aug. 20, 2017.
A third bond to be auctioned on the same day would raise 150 billion dong for maturity on Aug. 20, 2022.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.
Source: Reuters
Friday, August 10, 2007
Banks rushing to issue bonds
In July 2007 alone, the total value of bonds issued by commercial banks reached VND21,500bil, including the VND3tril worth of bonds issued by the Bank for Investment and Development of Vietnam (BIDV).
Banks are seemingly rushing to issue bonds at this moment, and analysts say that this is the result of the decision by the central bank in May to require higher compulsory reserve ratio on bank deposits. The decision has certainly led to the higher cost of capital mobilisation, which explains why banks have to find another way to mobilise capital. Issuing bonds proves to be a good solution, because banks do not have to make compulsory reserves for the capital raised from bond issuances as they have to do for the capital raised from bank deposits.
Commercial banks are ready to pay high interest rates for the bonds in order to attract more buyers. In the long term, the interest rates for deposits are expected to increase gradually, thus making the high interest rates banks have to pay at this moment cheaper.
Banks are rushing to issue bonds also because the issuances may help raise their total assets. Big total assets can satisfy shareholders of banks while attracting more clients.
However, the problem lies in the fact that banks are still trying to raise more funds though their usable capital remains profuse. The financial reports of several banks show that the mobilised capital has increased sharply in the last time, while outstanding loans have not increased accordingly. Last month BIDV issued VND3tril worth of bonds. Though the bank has not declared detailed figures, sources said that the buyers of the bonds were mainly other commercial banks.
Some analysts think that banks are trying to issue bonds because they want more long-term capital. Currently, the banking system is the biggest lender. The stock market is still in its first stage of development, and only few enterprises can access this capital source. Only a few enterprises have raised funds by issuing bonds, including the HCM City Infrastructure Investment (CII), which issued VND500bil worth of bonds last month with the guarantee of VIB Bank and VISecurities. There are many reasons behind the underdevelopment of the bond market, but the biggest reason, according to Dang Doan Kien, Director General of VISecurities, is that Vietnam still lacks credit rating firms, which can release credit ratings of enterprises as bond issuers.
In fact, the move by banks to issue bonds in the last time has been encouraged by the State Bank of Vietnam and the Ministry of Finance. On August 1, Deputy Prime Minister Nguyen Sinh Hung signed a document, requesting relevant ministries to join forces to control inflation. The central bank has been asked to check monetary policies, control payment instruments, and urged to use open market tools in order to limit the supply of cash. Therefore, bond issuance, which helps withdraw cash from circulation, has been backed by the central bank.
Sources said that several other banks were seeking permission to issue bonds and the proposals would be accepted.
Despite a lot of efforts, the consumer price index (CPI) jumped high in the first seven months of the year to 6.19%, higher than last year’s same period level of 4.4%. Controlling inflation is the most important task for the remaining months of the year. However, analysts have warned that it will be very difficult to obtain the goal at the same time as stabilising the exchange rate to encourage exports. International economics has the theory of the ‘impossible trinity’, which means three things cannot be obtained at the same time: free capital movement, a fixed exchange rate, and an independent monetary policy.
Source: VNE
Banks are seemingly rushing to issue bonds at this moment, and analysts say that this is the result of the decision by the central bank in May to require higher compulsory reserve ratio on bank deposits. The decision has certainly led to the higher cost of capital mobilisation, which explains why banks have to find another way to mobilise capital. Issuing bonds proves to be a good solution, because banks do not have to make compulsory reserves for the capital raised from bond issuances as they have to do for the capital raised from bank deposits.
Commercial banks are ready to pay high interest rates for the bonds in order to attract more buyers. In the long term, the interest rates for deposits are expected to increase gradually, thus making the high interest rates banks have to pay at this moment cheaper.
Banks are rushing to issue bonds also because the issuances may help raise their total assets. Big total assets can satisfy shareholders of banks while attracting more clients.
However, the problem lies in the fact that banks are still trying to raise more funds though their usable capital remains profuse. The financial reports of several banks show that the mobilised capital has increased sharply in the last time, while outstanding loans have not increased accordingly. Last month BIDV issued VND3tril worth of bonds. Though the bank has not declared detailed figures, sources said that the buyers of the bonds were mainly other commercial banks.
Some analysts think that banks are trying to issue bonds because they want more long-term capital. Currently, the banking system is the biggest lender. The stock market is still in its first stage of development, and only few enterprises can access this capital source. Only a few enterprises have raised funds by issuing bonds, including the HCM City Infrastructure Investment (CII), which issued VND500bil worth of bonds last month with the guarantee of VIB Bank and VISecurities. There are many reasons behind the underdevelopment of the bond market, but the biggest reason, according to Dang Doan Kien, Director General of VISecurities, is that Vietnam still lacks credit rating firms, which can release credit ratings of enterprises as bond issuers.
In fact, the move by banks to issue bonds in the last time has been encouraged by the State Bank of Vietnam and the Ministry of Finance. On August 1, Deputy Prime Minister Nguyen Sinh Hung signed a document, requesting relevant ministries to join forces to control inflation. The central bank has been asked to check monetary policies, control payment instruments, and urged to use open market tools in order to limit the supply of cash. Therefore, bond issuance, which helps withdraw cash from circulation, has been backed by the central bank.
Sources said that several other banks were seeking permission to issue bonds and the proposals would be accepted.
Despite a lot of efforts, the consumer price index (CPI) jumped high in the first seven months of the year to 6.19%, higher than last year’s same period level of 4.4%. Controlling inflation is the most important task for the remaining months of the year. However, analysts have warned that it will be very difficult to obtain the goal at the same time as stabilising the exchange rate to encourage exports. International economics has the theory of the ‘impossible trinity’, which means three things cannot be obtained at the same time: free capital movement, a fixed exchange rate, and an independent monetary policy.
Source: VNE
Wednesday, August 08, 2007
Paradox exists on corporate bond market
In developed economies, when the share market falls, investors tend to turn their investments to the bond market, which is less risky. However, it is quite different in Vietnam: when the VN Index falls, the bond market also becomes quiet.
At the Hanoi Securities Trading Centre, the daily value of bond transactions accounts for 70% of the total value of transactions on the market, worth VND170-180bil ($10.62mil).
However, Vietnam’s bond market is still considered underdeveloped for many reasons.
First, the scale of the market remains small, equivalent to 3-6% of GDP. In a developed stock market like the US’, the value of the bond market is equivalent to 80% of the country’s GDP.
Second, the main commodity of the market is the government bond, accounting for 80% of total issued bonds. Meanwhile, the corporate bond, not the government bond, plays the decisive role in creating the attractiveness of the market.
According to a recent report by the Hong Kong and Shanghai Banking Corporation (HSBC), the issued corporate bonds had the value of more than VND4tril ($250mil). The biggest bond issuers are the Bank for Investment and Development of Vietnam (BIDV), Electricity of Vietnam (EVN), the Vietnam Shipbuilding Industry Corporation (Vinashin). Most recently, the HCM City Infrastructure Investment and Development Company (CII) has successfully issued VND500bil worth of corporate bonds. Meanwhile, Vinashin has been well known for its successful bond issuance, raising VND3tril ($187.5mil) in capital.
The bonds’ interest rates proved to be attractive to investors. EVN’s 10-year interest rate was 8.9%, while BIDV’s 15-year interest rate was 8.4%, higher than the government bond’s rate, at nearly 8%.
According to HSBC, an estimated VND12tril ($750mil) worth of corporate bonds will be issued from now to the end of the year, raising the total value of bonds to be issued this year to VND16tril ($1bil), higher than the volume of VND15tril ($937.5mil) in 2006.
Enterprises well understand that issuing bonds is a good way to raise funds. This is a source of long-term capital with stable interest rates. The bond issuers only have to pay interest to bond holders every year, 8-10% on average. The interest rate proves to be much lower than that which the dividend companies have to pay their shareholders, thus helping make the costs of raising capital lower.
However, in fact, not many enterprises want to issue bonds. The government still has to come forward and issue bonds, then re-lend raised capital to enterprises. The process proves to waste time and money.
The biggest problem lies in bond issuance techniques. Many Vietnamese enterprises cannot meet the standardised requirements in accountancy (having financial reports audited and having no credit rating).
Source: VNE
At the Hanoi Securities Trading Centre, the daily value of bond transactions accounts for 70% of the total value of transactions on the market, worth VND170-180bil ($10.62mil).
However, Vietnam’s bond market is still considered underdeveloped for many reasons.
First, the scale of the market remains small, equivalent to 3-6% of GDP. In a developed stock market like the US’, the value of the bond market is equivalent to 80% of the country’s GDP.
Second, the main commodity of the market is the government bond, accounting for 80% of total issued bonds. Meanwhile, the corporate bond, not the government bond, plays the decisive role in creating the attractiveness of the market.
According to a recent report by the Hong Kong and Shanghai Banking Corporation (HSBC), the issued corporate bonds had the value of more than VND4tril ($250mil). The biggest bond issuers are the Bank for Investment and Development of Vietnam (BIDV), Electricity of Vietnam (EVN), the Vietnam Shipbuilding Industry Corporation (Vinashin). Most recently, the HCM City Infrastructure Investment and Development Company (CII) has successfully issued VND500bil worth of corporate bonds. Meanwhile, Vinashin has been well known for its successful bond issuance, raising VND3tril ($187.5mil) in capital.
The bonds’ interest rates proved to be attractive to investors. EVN’s 10-year interest rate was 8.9%, while BIDV’s 15-year interest rate was 8.4%, higher than the government bond’s rate, at nearly 8%.
According to HSBC, an estimated VND12tril ($750mil) worth of corporate bonds will be issued from now to the end of the year, raising the total value of bonds to be issued this year to VND16tril ($1bil), higher than the volume of VND15tril ($937.5mil) in 2006.
Enterprises well understand that issuing bonds is a good way to raise funds. This is a source of long-term capital with stable interest rates. The bond issuers only have to pay interest to bond holders every year, 8-10% on average. The interest rate proves to be much lower than that which the dividend companies have to pay their shareholders, thus helping make the costs of raising capital lower.
However, in fact, not many enterprises want to issue bonds. The government still has to come forward and issue bonds, then re-lend raised capital to enterprises. The process proves to waste time and money.
The biggest problem lies in bond issuance techniques. Many Vietnamese enterprises cannot meet the standardised requirements in accountancy (having financial reports audited and having no credit rating).
Source: VNE
Friday, August 03, 2007
Vinatex to sell $62 mln bond
The investment arm of Vietnam National Textile and Garment Group (Vinatex) will sell bonds worth 1 trillion dong ($62 million) this year to finance an expansion, a state-run newspaper reported on Friday.
Vietnam's largest textile firm would issue the bonds in two tranches and the proceeds should help it and subsidiaries boost production more cheaply than bank loans, Vinatex chairman Le Quoc An was quoted by the Saigon Times Daily as saying.
France's BNP Paribas would underwrite the bonds and the Empower Securities Co., 22 percent owned by Vinatex, would be the adviser on the issue.
An gave no further details, but financial sources close to the deal said the first tranche would be sold in the next few weeks.
Textile and garment products are Vietnam's second-largest foreign exchange earner after crude oil, bringin in $4.24 billion in the first seven months of this year, a rise of 28.6 percent from a year earlier, government figures showed.
Vinatex, which accounted for 22 percent of Vietnam's textile and garment exports in 2006, will undergo privatisation next year following a government approval granted in June.
The group has been partially privatising its subsidiaries, planning the IPOs of two units, Phong Phu Fabric Textile Factory and Phong Phu Towel Textile Factory, late this month on the Ho Chi Minh Stock Exchange.
Source: Reuters
Vietnam's largest textile firm would issue the bonds in two tranches and the proceeds should help it and subsidiaries boost production more cheaply than bank loans, Vinatex chairman Le Quoc An was quoted by the Saigon Times Daily as saying.
France's BNP Paribas would underwrite the bonds and the Empower Securities Co., 22 percent owned by Vinatex, would be the adviser on the issue.
An gave no further details, but financial sources close to the deal said the first tranche would be sold in the next few weeks.
Textile and garment products are Vietnam's second-largest foreign exchange earner after crude oil, bringin in $4.24 billion in the first seven months of this year, a rise of 28.6 percent from a year earlier, government figures showed.
Vinatex, which accounted for 22 percent of Vietnam's textile and garment exports in 2006, will undergo privatisation next year following a government approval granted in June.
The group has been partially privatising its subsidiaries, planning the IPOs of two units, Phong Phu Fabric Textile Factory and Phong Phu Towel Textile Factory, late this month on the Ho Chi Minh Stock Exchange.
Source: Reuters
SeA-Bank to issue $124 mln convertible bond
Vietnam's central bank has given partly private Dong Nam A Bank permission to sell convertible bonds worth 2 trillion dong ($124 million) on domestic markets.
The central bank, announcing the approval on its Web site (http://www.sbv.gov.vn/) on Friday, did not say what the Hanoi-based bank, also known as SeA Bank, would use the proceeds for.
SeA Bank, which has seen its assets rise 27 percent over the first six months of 2007 to more than 13 trillion dong, has not published details of the debt issue.
The bank, one of more than 30 partly private banks in Vietnam, expects to double its registered capital to 3 trillion dong by the end of this year.
The central bank has said it would take more dong out of the economy in the coming months through open market transactions to curb inflation, which accelerated to 8.39 percent last month from July 2006.
It has also allowed three Vietnamese banks, Vietcombank, ACB and Techcombank, to raise a combined 17.5 trillion dong in long-term debt.
Last month, HSBC's branch in Vietnam secured central bank permission to issue bonds equivalent to 8 trillion dong by the end of 2007.
Source: Reuters
The central bank, announcing the approval on its Web site (http://www.sbv.gov.vn/) on Friday, did not say what the Hanoi-based bank, also known as SeA Bank, would use the proceeds for.
SeA Bank, which has seen its assets rise 27 percent over the first six months of 2007 to more than 13 trillion dong, has not published details of the debt issue.
The bank, one of more than 30 partly private banks in Vietnam, expects to double its registered capital to 3 trillion dong by the end of this year.
The central bank has said it would take more dong out of the economy in the coming months through open market transactions to curb inflation, which accelerated to 8.39 percent last month from July 2006.
It has also allowed three Vietnamese banks, Vietcombank, ACB and Techcombank, to raise a combined 17.5 trillion dong in long-term debt.
Last month, HSBC's branch in Vietnam secured central bank permission to issue bonds equivalent to 8 trillion dong by the end of 2007.
Source: Reuters
Monday, July 30, 2007
Firms still bashful about bonds
Corporate bonds are still an unpopular method for raising capital, despite holding several advantages over Stocks and bank loans.
In 2006, the Government passed Decree 52/2006/ND-CP allowing private companies to issue debentures, yet few took advantage of this new source of capital. The majority of bonds in the market are from State enterprises.
Earlier this month, the HCM City Infrastructure Investment JSC (CII) succeeded in selling VND500bil (US$31.25mil) in debentures, one of the few private listings this year. The Viet Nam International Bank (VIBank) and International Securities Company (VISecurities) acted as underwriters.
CII bonds were bought by seven major institutional investors, including the Bank for Investment and Development of Vietnam, Military Bank, Bao Viet Fund Management and Hong Kong - based PCA Investment Funds.
Despite CII's success, companies still prefer traditional avenues for raising money.
Experts, though, argue if a company has been long established and has a solid performance record then there was no need to rely on bank loans and stocks, but could instead issue bonds.
"The cost of issuing corporate bonds is often lower than that of issuing shares, and companies can easily raise a huge amount of money at the same time," said Vo Hoai Chang, deputy research head at SME Securities.
"Besides, the success rates of bond issues are higher because when issuing bonds a company must have an institution to guarantee the bonds if they go unsold in the auction."
VIBank deputy director Nguyen Dinh Tung noted that bond rates currently are lower than bank loans.
CII seven-year bonds carry a 10.3% coupon rate, while if the company borrowed from a bank the interest would be 1-1.5% a year higher.
"However, the reason for bonds being unpopular lies in procedures to find a guarantor," said Chang.
"Normally, companies often raise a large amount of money through issuing bonds, often from VND100bil to VND500bil, so they have to find a guarantor who has the financial capacity to cover the amount," which is not easy in the current monetary tightening cycle.
Chang also said State enterprises are better equipped to offer bonds, because they tend to have long term development plans and the financial capacity to cover debts.
In contrast, private companies tend to look at the short or medium term and, therefore, do not have the same capital requirements.
In fact, only infrastructure and real estate developers, like CII, needed a large amount of capital quickly, said Chang.
CII will invest the money raised via the debentures into high-rise building projects in HCM City, the Tan An Hoi residential zone and the Tam Tan resettlement zone.
So for the time being, the bond market remains in its infancy, though analysts foresee strong growth.
"It is likely that in the next one or two years, the market will develop as companies begin to recognise the benefits of issuing bonds and investors start being lured by bonds," Chang said.
"Several securities companies have set up research and analysis departments focusing on bonds to help develop the market and raise investor awareness."
Tung added that as companies exhaust traditional avenues for mobilising capital then the bond market should accelerate.
Source: VNE
In 2006, the Government passed Decree 52/2006/ND-CP allowing private companies to issue debentures, yet few took advantage of this new source of capital. The majority of bonds in the market are from State enterprises.
Earlier this month, the HCM City Infrastructure Investment JSC (CII) succeeded in selling VND500bil (US$31.25mil) in debentures, one of the few private listings this year. The Viet Nam International Bank (VIBank) and International Securities Company (VISecurities) acted as underwriters.
CII bonds were bought by seven major institutional investors, including the Bank for Investment and Development of Vietnam, Military Bank, Bao Viet Fund Management and Hong Kong - based PCA Investment Funds.
Despite CII's success, companies still prefer traditional avenues for raising money.
Experts, though, argue if a company has been long established and has a solid performance record then there was no need to rely on bank loans and stocks, but could instead issue bonds.
"The cost of issuing corporate bonds is often lower than that of issuing shares, and companies can easily raise a huge amount of money at the same time," said Vo Hoai Chang, deputy research head at SME Securities.
"Besides, the success rates of bond issues are higher because when issuing bonds a company must have an institution to guarantee the bonds if they go unsold in the auction."
VIBank deputy director Nguyen Dinh Tung noted that bond rates currently are lower than bank loans.
CII seven-year bonds carry a 10.3% coupon rate, while if the company borrowed from a bank the interest would be 1-1.5% a year higher.
"However, the reason for bonds being unpopular lies in procedures to find a guarantor," said Chang.
"Normally, companies often raise a large amount of money through issuing bonds, often from VND100bil to VND500bil, so they have to find a guarantor who has the financial capacity to cover the amount," which is not easy in the current monetary tightening cycle.
Chang also said State enterprises are better equipped to offer bonds, because they tend to have long term development plans and the financial capacity to cover debts.
In contrast, private companies tend to look at the short or medium term and, therefore, do not have the same capital requirements.
In fact, only infrastructure and real estate developers, like CII, needed a large amount of capital quickly, said Chang.
CII will invest the money raised via the debentures into high-rise building projects in HCM City, the Tan An Hoi residential zone and the Tam Tan resettlement zone.
So for the time being, the bond market remains in its infancy, though analysts foresee strong growth.
"It is likely that in the next one or two years, the market will develop as companies begin to recognise the benefits of issuing bonds and investors start being lured by bonds," Chang said.
"Several securities companies have set up research and analysis departments focusing on bonds to help develop the market and raise investor awareness."
Tung added that as companies exhaust traditional avenues for mobilising capital then the bond market should accelerate.
Source: VNE
Vietnam bank to underwrite VND720 bln bond
The telecoms arm of dominant utility Vietnam Electricity (EVN) group has signed a contract for a domestic bank to underwrite a VND720 billion (US$44.6 million) corporate bond, local media reported Saturday. EVN Telecom's bond might raise more funds than the offer thanks to investor's interest, An Binh Bank's Chief Executive Luu Duc Khanh was quoted by the Liberation Saigon daily as saying, after EVN Telecom signed the contract with An Binh Bank on Friday.
"In such case, we are allowed to raise an extra 20 percent above the target," he said, but gave no details of the bond.
Hanoi-based EVN Telecom is one of three providers of CDMA technology-based mobile phone services in the communist-run Southeast Asian country. It also develops wireless landline phones and provides Internet access.
In April, EVN Telecom said the company and Singapore's VSNL International would build part of a $200-million pan-Asian submarine optic cable which would link Singapore, the Philippines, Japan, Hong Kong and Guam when operational in the first quarter of 2008.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Thanh Nien
"In such case, we are allowed to raise an extra 20 percent above the target," he said, but gave no details of the bond.
Hanoi-based EVN Telecom is one of three providers of CDMA technology-based mobile phone services in the communist-run Southeast Asian country. It also develops wireless landline phones and provides Internet access.
In April, EVN Telecom said the company and Singapore's VSNL International would build part of a $200-million pan-Asian submarine optic cable which would link Singapore, the Philippines, Japan, Hong Kong and Guam when operational in the first quarter of 2008.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Thanh Nien
Friday, July 27, 2007
ACB bonds to raise $402.7 million
Vietnam's central bank has allowed partly private Asia Commercial Bank (ACB) to raise 6.5 trillion dong ($402.7 million) through long-term bond issues this year on domestic markets.
The Ho Chi Minh City-based bank would sell the bonds by the end of 2007 and use the proceeds in line with a plan approved by the State Bank of Vietnam, a statement on the central bank's website said on Thursday.
ACB, Vietnam's fifth-largest lender by assets, had 58.4 trillion dong in assets at the end of June, a rise of 30.9 percent from the end of 2006.
The bank has not published details of its debt issues.
Source: VNA
The Ho Chi Minh City-based bank would sell the bonds by the end of 2007 and use the proceeds in line with a plan approved by the State Bank of Vietnam, a statement on the central bank's website said on Thursday.
ACB, Vietnam's fifth-largest lender by assets, had 58.4 trillion dong in assets at the end of June, a rise of 30.9 percent from the end of 2006.
The bank has not published details of its debt issues.
Source: VNA
Wednesday, July 25, 2007
VDB sells 400 bln dong bond at 8.4 pct
State-run Vietnam Development Bank (VDB) has sold 400 billion dong ($24.8 million) worth of 15-year bonds at an auction, with an annual coupon of 8.4 percent, the Hanoi stock market said on Wednesday.
The over-the-counter exchange said three bidders sought to buy the debt at between 8.2 percent and 10 percent on Tuesday, when VDB offered 600 billion dong worth of the bond.
It gave no details of the buyers of the debt which VDB, one of Vietnam's two policy lending banks, will issue on Thursday for maturity on July 26, 2022.
The coupon of the bond sold on Tuesday was higher than the that of the bank's 15-year bond worth 500 billion dong sold on June 18 which carried a coupon of 8 percent.
Source: Reuters
The over-the-counter exchange said three bidders sought to buy the debt at between 8.2 percent and 10 percent on Tuesday, when VDB offered 600 billion dong worth of the bond.
It gave no details of the buyers of the debt which VDB, one of Vietnam's two policy lending banks, will issue on Thursday for maturity on July 26, 2022.
The coupon of the bond sold on Tuesday was higher than the that of the bank's 15-year bond worth 500 billion dong sold on June 18 which carried a coupon of 8 percent.
Source: Reuters
Tuesday, July 24, 2007
Techcombank bond issue to raise $248 mln
The unlisted bank, 15 percent owned by HSBC Holdings Plc., should sell the bonds and use the proceeds in line with a plan approved by the State Bank of Vietnam, a statement on the central bank's website said Tuesday.
Hanoi-based Techcombank, Vietnam's seventh-largest lender by assets, had 24 trillion dong in assets at the end of June, up 38 percent from the end of 2006.
The bank has yet to publish details of the debt issues.
Source: Thanh Nien
Hanoi-based Techcombank, Vietnam's seventh-largest lender by assets, had 24 trillion dong in assets at the end of June, up 38 percent from the end of 2006.
The bank has yet to publish details of the debt issues.
Source: Thanh Nien
Monday, July 23, 2007
Vietnam's bank to sell 600 bln dong bonds on Tuesday
State-run Vietnam Development Bank plans to raise 600 billion dong ($37 million) from auctioning its July 2022 bonds on Tuesday, the Hanoi over-the-counter stock market said in a statement on Monday.
The exchange said it would sell the 15-year bonds on Tuesday for maturity on July 26, 2022 on behalf of Vietnam Development Bank (VDB), one of the country's two state-run policy banks.
At the last VDB bond auction on July 3, the lender sold 175 billion dong worth of its 10-year bonds with an annual coupon of 7.95 percent, or a quarter of the total 700 billion dong on offer.
Last Friday, the Hanoi market sold 600 billion dong ($37 million) worth of 5-year government bonds at an auction with an annual coupon of 7.42 percent.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.
Source: Reuters
The exchange said it would sell the 15-year bonds on Tuesday for maturity on July 26, 2022 on behalf of Vietnam Development Bank (VDB), one of the country's two state-run policy banks.
At the last VDB bond auction on July 3, the lender sold 175 billion dong worth of its 10-year bonds with an annual coupon of 7.95 percent, or a quarter of the total 700 billion dong on offer.
Last Friday, the Hanoi market sold 600 billion dong ($37 million) worth of 5-year government bonds at an auction with an annual coupon of 7.42 percent.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.
Source: Reuters
Friday, July 20, 2007
Banks and funds snap up $31 mln CII bonds
Seven institutional investors including two banks have snapped up the 7-year corporate bonds worth 500 billion dong ($31 million) issued by an investment firm in Ho Chi Minh City, underwriters of the debt said on Friday.
Ho Chi Minh City Infrastructure Investment Co. (CII) sold the July 2014 bonds at an annual coupon of 10.3 percent, underwriters Vietnam International Bank and Vietnam International Securities Company said in a statement.
CII has said it will use proceeds from the issue to finance water supply and bridge construction projects in the city. It did not say if the bonds would be listed on Vietnam's stock market.
Shares in CII were trading down 2.86 percent at 68,000 dong ($4.2) by 0227 GMT on Friday, valuing the firm at around $126 million.
State-run Vietindebank and Saigon Securities (SSI) each bought 100 billion dong worth of the debt.
Other investors included Baoviet Securities (BVS), Prudential Balanced Fund (PRUBF1), Prudential Vietnam Assurance Private Ltd., Hong Kong-based PCA International Funds SPC and unlisted Military Bank that is run by Vietnam's army.
CII invests in urban projects such as roads, bridges, and residential areas. It also provides consultation on financial investment and collects road tolls.
Source: Reuters
Ho Chi Minh City Infrastructure Investment Co. (CII) sold the July 2014 bonds at an annual coupon of 10.3 percent, underwriters Vietnam International Bank and Vietnam International Securities Company said in a statement.
CII has said it will use proceeds from the issue to finance water supply and bridge construction projects in the city. It did not say if the bonds would be listed on Vietnam's stock market.
Shares in CII were trading down 2.86 percent at 68,000 dong ($4.2) by 0227 GMT on Friday, valuing the firm at around $126 million.
State-run Vietindebank and Saigon Securities (SSI) each bought 100 billion dong worth of the debt.
Other investors included Baoviet Securities (BVS), Prudential Balanced Fund (PRUBF1), Prudential Vietnam Assurance Private Ltd., Hong Kong-based PCA International Funds SPC and unlisted Military Bank that is run by Vietnam's army.
CII invests in urban projects such as roads, bridges, and residential areas. It also provides consultation on financial investment and collects road tolls.
Source: Reuters
Vietindebank to issue $186 mln of 5-year bonds
Vietnam's second largest bank by assets, Bank for Investment and Development (BIDV, Vietindebank), said on Thursday it would sell 3 trillion dong ($186 million) of 5-year bonds on domestic markets from next week.
The July 23, 2012 bond would carry an annual coupon of 8.15 percent, the Hanoi-based bank said in a statement.
Vietindebank said the bonds would be sold to domestic and foreign institutions "to raise long-term funds and meet the funding demand in business activities".
Vietindebank Chief Executive Tran Bac Ha said last week the lender, national carrier Vietnam Airlines, state oil group Petrovietnam and Vietnam Posts and Telecommunications group would form a share-holding firm to lease aircraft.
Pending government approval, the firm would buy four of Boeing Co.'s new 787 planes to lease to domestic airlines with the first delivery in 2015, when the new company would be fully operational.
The aircraft purchase would be worth as much as $800 million at list prices.
Vietindebank has hired U.S. investment bank Morgan Stanley as an adviser on its IPO. It plans to list overseas following its domestic flotation in the first quarter of 2008.
Vietindebank and four other state-run banks have been ordered to partially privatise this year and in 2008, a move seen as a test of Vietnam's commitments on joining the World Trade Organisation to open its markets.
Source: Reuters
The July 23, 2012 bond would carry an annual coupon of 8.15 percent, the Hanoi-based bank said in a statement.
Vietindebank said the bonds would be sold to domestic and foreign institutions "to raise long-term funds and meet the funding demand in business activities".
Vietindebank Chief Executive Tran Bac Ha said last week the lender, national carrier Vietnam Airlines, state oil group Petrovietnam and Vietnam Posts and Telecommunications group would form a share-holding firm to lease aircraft.
Pending government approval, the firm would buy four of Boeing Co.'s new 787 planes to lease to domestic airlines with the first delivery in 2015, when the new company would be fully operational.
The aircraft purchase would be worth as much as $800 million at list prices.
Vietindebank has hired U.S. investment bank Morgan Stanley as an adviser on its IPO. It plans to list overseas following its domestic flotation in the first quarter of 2008.
Vietindebank and four other state-run banks have been ordered to partially privatise this year and in 2008, a move seen as a test of Vietnam's commitments on joining the World Trade Organisation to open its markets.
Source: Reuters
Tuesday, July 17, 2007
CII issues 500 billion VND worth bonds
Bonds worth 500 billion VND of the Ho Chi Minh City Infrastructure Investment joint stock company (CII) have been issued under the guarantee of the Viet Nam International (VIB) bank and its securities company, VISecurities, the bank announced on July 16.
The 7-year bonds have a face value of 100,000 VND each and bear an interest rate of 10.3 percent. They were officially released on July 9 in book-entry form and have sold out.
Money collected from bond issuance will be invested into infrastructure projects, such as the high-rise building at 70 Lu Gia, Tan An Hoi residential area and Tam Tan resettlement residential area, according to a CII representative. This is the first time VIB Bank has acted as a guarantor for bond issuance by a joint stock company. Last year, the bank successfully guaranteed 600 billion VND bonds issued by the Electricity of Viet Nam.
Source: VNA
The 7-year bonds have a face value of 100,000 VND each and bear an interest rate of 10.3 percent. They were officially released on July 9 in book-entry form and have sold out.
Money collected from bond issuance will be invested into infrastructure projects, such as the high-rise building at 70 Lu Gia, Tan An Hoi residential area and Tam Tan resettlement residential area, according to a CII representative. This is the first time VIB Bank has acted as a guarantor for bond issuance by a joint stock company. Last year, the bank successfully guaranteed 600 billion VND bonds issued by the Electricity of Viet Nam.
Source: VNA
Friday, July 13, 2007
Vietnam to sell $1 bln of dollar bonds in Q3
The Vietnamese government plans to sell $1 billion of dollar-denominated sovereign bonds in the third quarter this year to raise funds for major infrastructure projects, a Finance Ministry official said on Friday.
"Preparation is under way for the sale of the bonds and we are selecting an international financial organisation to advise the issue," the official, who asked not to be identified, told Reuters.
Source: Reuters
"Preparation is under way for the sale of the bonds and we are selecting an international financial organisation to advise the issue," the official, who asked not to be identified, told Reuters.
Source: Reuters
Vietnam to auction $43.4 mln bonds on July 26
Vietnam's State Treasury will sell 700 billion dong ($43.4 million) of government bonds at an auction this month, it told the over-the-counter Hanoi stock market on Friday.
A market statement said the State Treasury would sell the five-year bonds on July 26 and issue the debt on July 30.
At the last auction on July 9, the State Treasury sold 600 billion dong in five-year bonds with an annual coupon of 7.4 percent, up from 7.25 percent on a five-year bond sold in late June.
The Hanoi market also said it would offer separate five-year government bonds on July 20 for maturity on July 24, 2012. It did not specify the value. These belong to a large-lot government bond type that carries an annual coupon of 7.4 percent.
The Finance Ministry wants to sell 22 trillion dong ($1.37 billion) of bonds this year to invest in transport and irrigation projects.
The Hanoi market has so far this year auctioned a combined 8.74 trillion dong ($542 million) of government bonds, bonds issued by the Vietnam Development Bank and Ho Chi Minh City urban bonds.
In March Moody's upgraded the outlook both for Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debt.
Source: Reuters
A market statement said the State Treasury would sell the five-year bonds on July 26 and issue the debt on July 30.
At the last auction on July 9, the State Treasury sold 600 billion dong in five-year bonds with an annual coupon of 7.4 percent, up from 7.25 percent on a five-year bond sold in late June.
The Hanoi market also said it would offer separate five-year government bonds on July 20 for maturity on July 24, 2012. It did not specify the value. These belong to a large-lot government bond type that carries an annual coupon of 7.4 percent.
The Finance Ministry wants to sell 22 trillion dong ($1.37 billion) of bonds this year to invest in transport and irrigation projects.
The Hanoi market has so far this year auctioned a combined 8.74 trillion dong ($542 million) of government bonds, bonds issued by the Vietnam Development Bank and Ho Chi Minh City urban bonds.
In March Moody's upgraded the outlook both for Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debt.
Source: Reuters
Tuesday, July 10, 2007
Vietnam raises $37 mln via govt bond, yield 7.4 pct
Vietnam raised 600 billion dong ($37 million) in an auction of 5-year bonds on Monday, the Hanoi stock market said.
The exchange said bids were between 7.35 percent and 8 percent and the bonds were sold at an annual coupon of 7.4 percent. The bonds will be issued on July 11 and mature on July 11, 2012.
On June 25, the Hanoi market sold 500 billion dong worth of 5-year government bonds at an annual coupon of 7.25 percent.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Reuters
The exchange said bids were between 7.35 percent and 8 percent and the bonds were sold at an annual coupon of 7.4 percent. The bonds will be issued on July 11 and mature on July 11, 2012.
On June 25, the Hanoi market sold 500 billion dong worth of 5-year government bonds at an annual coupon of 7.25 percent.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Reuters
Thursday, July 05, 2007
HSBC to issue Vietnam bonds worth $496 mln
HSBC has become the first foreign bank in Vietnam to receive permission to issue long-term bonds this year.
The bond issue will be equivalent to 8 trillion dong ($496 million).
"The coupon on the long-term paper issued in 2007 by HSBC in Vietnam should match market interest rates," the central bank said in a directive seen on Thursday.
HSBC officials in Hanoi said details of the bond issue had not been finalised.
The bank, which has two retail branches in the capital Hanoi and trade hub Ho Chi Minh City, was also the first foreign bank in the country to offer dollar-denominated certificates of deposit two years ago, with interest now ranging from 4.1 to 4.85 percent.
Bankers in Hanoi said dong-denominated corporate bonds are much sought after by foreign investors for their attractive annual yields of 9 percent to 10 percent.
Source: Reuters
The bond issue will be equivalent to 8 trillion dong ($496 million).
"The coupon on the long-term paper issued in 2007 by HSBC in Vietnam should match market interest rates," the central bank said in a directive seen on Thursday.
HSBC officials in Hanoi said details of the bond issue had not been finalised.
The bank, which has two retail branches in the capital Hanoi and trade hub Ho Chi Minh City, was also the first foreign bank in the country to offer dollar-denominated certificates of deposit two years ago, with interest now ranging from 4.1 to 4.85 percent.
Bankers in Hanoi said dong-denominated corporate bonds are much sought after by foreign investors for their attractive annual yields of 9 percent to 10 percent.
Source: Reuters
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