Vietnamese government sells US$1b in sovereign bonds

HANOI, Nov 10 — The Vietnamese government raised US$1 billion (RM3.35 billion) via a rare issue of sovereign bonds at an annual coupon of 4.8 per cent, the lowest among its three offshore dollar-dominated debt sales, a Finance Ministry statement said.

The coupon was below Vietnam's initial target of 5.125 per cent per annum, as bids from foreign investors totalled US$10.6 billion, the statement said.

Proceeds of the bonds will be used in part for swapping the government's sovereign debts issued in 2005 and 2010 .

The debt sold last week was assigned a provisional rating of (P)B1 by Moody's. The country is rated B1 by Moody's and BB- by Standard & Poor's, and both ratings have a stable outlook. — Reuters