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Vietcombank buys $1 bln worth of government bonds: report
By TN News -

 A branch of Vietcombank. File photo

In a historic move, Vietnamese government has issued international bonds worth a total of US$1 billion specifically for Vietcombank, the country's top lender by market value, news website Saigon Times Online quoted an unnamed source as saying on Tuesday.
The recently-completed transaction saw the bank purchase the US dollar-denominated bonds which will be due in 5-10 years and yield at about 4.8 percent from the Ministry of Finance, according to the news report.
The move came as Vietnam's sovereign bonds issued in dong did not perform well over the past two years, it said.
In fact, the government managed to gain only over VND8.5 trillion ($392.5 million) worth of bonds after 11 public auctions held last month. Under Vietnamese laws, the sale of dong-issued bonds must be conducted via auctions.
On the other hand, the bonds obviously performed better in the global market where the finance ministry reported a successful issuance of 10-year bonds worth $1 billion at a yield of 4.8 percent last year end.
The first issuance of its kind in more than four years helped the government refinance 54.4 percent of borrowings via bonds in 2005 and 25.4 percent, according to the ministry.
Vietnam sold $1 billion of 10-year securities in 2010, with a yield of 6.75 percent.
The ministry last month advised the government to continue issuing more bonds next year to refinance existing debts and raise funds for long-term projects.