UPDATE 1-Vietnam raises $265.5 mln in bond auction, with higher coupons

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HANOI, May 15 (Reuters) – Vietnam’s State Treasury raised 6.76 trillion dong ($265.5 million) from 10 trillion dong of government bonds auctioned at the Hanoi Stock Exchange on Wednesday, with coupons hitting the highest levels this year.

The amount is higher than $236 million raised last week, the bourse said.

Vietnam targets to raise 400 trillion dong from government bond sales this year mainly to fund its public investments, one of the key drivers of economic growth.

The State Treasury sold all of the 2 trillion dong of 5-year bonds offered on Wednesday with a coupon of 1.72%. It sold 2.6 trillion out of 3 trillion dong of 10-year bonds offered with a coupon of 2.61%.

It also sold 755 billion dong out of 3 trillion dong of 15-year bonds offered with a coupon of 2.78%, and 400 billion dong out of 500 billion dong of 20-year bonds offered with a coupon of 2.86%.

It sold all of the 1 trillion dong of 30-year bonds offered with a coupon of 3.03%, but failed to sell any of the 500 billion dong of 7-year bonds offered.

Vietnam has so far this year raised 121 trillion dong from government bond sales, according to data from the exchange.

Companies in Vietnam raised 43.98 trillion dong from corporate bond issuance in the year to May 10, according to data from the Vietnam Bond Market Association. (Reporting by Khanh Vu; Editing by Martin Petty)

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