The Government has sold US$750 million worth of its first sovereign bonds to be listed on the Singapore Exchange in the near future.

The Finance Ministry posts on its website, www.mof.gov.vn, that the 10-year dollar-denominated bonds were priced at 98.223% on par value with a coupon of 6.875% to yield 10-year U.S. T-bonds plus 256.4 basis points.

The ministry has applied for the Singapore Exchange to list the bonds.

Deputy Minister Le Thi Bang Tam said, "This offer marks Vietnam's first step in global capital markets and reaffirms the country's commitments toward full integration into the world economy.

"We're very pleased with the strong reception for Vietnam's offer, and we hope that this transaction will encourage a greater level of investors' interest in Vietnam."

Paul Calello, chairman and CEO of Credit Suisse First Boston in the Asia Pacific Region, which underwrote the offer, said: "We're proud to act as sole book runner for the sale, which is seen as the solid foundation for Vietnam's entry into global financial markets."

The offer will diversify Vietnam's sources of financing, create a benchmark to assist in capital raising exercises for corporate and municipal borrowers and provide investors worldwide with the opportunity to better understand the country's latest developments.

Vietnam's sovereign rating was upgraded by Moody's Investors Services in July from B1 to Ba3. On October 18, Standard and Poor's raised its outlook on the country's long-term foreign currency rating of BB- to positive from stable.

The ministry noted that this announcement is not an offer of securities for sale in the U.S. and that the Government does not intend to register or conduct any portion of the offer in the U.S.

Neither does it constitute any offer of securities for sale in Canada, Japan or Australia.

source : www.saigontimes.com.vn

i have read some vietnam news about this and they said that many foreign investor offered the prize 5 or 6 times higher than they actually worth in order to buy them, like 5 bil dollars or something..
so is it a good new?? shouldn't government countinue to sell more and more of these sovereign bonds???

and what the heck is sovereign bond any way???

Sovereign = nation/country, Like Treasury Bonds in the US Government Bonds in Australia, where the government sell notes promising that the amount on the notes will be paid at maturity.

For example, the government releases a $100 bond selling at $95 and matures in one year. That essentially means the buyer will make a profit of $5 in exactly 1 year's time.

I thought the government is selling brady bonds in exchange for cancallation of default foreign debts.

Those are different. I don't think Vietnam has defaulted on any international debt before. As a matter of fact, the national debt level is quite low and Vietnam's Standard and Poor's ranking is the best for it's level of development.

Vietnam's Standard and Poor's ranking is the best for it's level of development.

and where are your sources? I wanna read.

http://www.thanhniennews.com/business/?catid=2&newsid=9974

or http://goliath.ecnext.com/coms2/summary_0199-3028305_ITM