ADB To Lend Vietnam $72 Million Loan For Infrastructure Development

HANOI -(Dow Jones)- The Asian Development Bank said Friday it has signed an agreement with the government of Vietnam for a $72 million loan to develop infrastructure in the country’s northern province of Thanh Hoa.

The loan will be used to fund a $118-million project to develop and upgrade urban infrastructure and services in the province, 150 kilometers south of Hanoi, the bank said.

The 32-year loan bears an annual interest of 1% for the first eight years and 1.5% for the rest of the term.

The bank has also agreed to provide a grant of $2 million to the province to improve its water-supply system.

ADB said South Korea’s Eximbank is also providing a $32.7-million loan to Vietnam build an 11-kilometer road in the province.

-By Vu Trong Khanh, Dow Jones Newswires; 844 35123042;


Vietnam govt bond sales fail due to high yield bids

HANOI, April 17 (Reuters) – Vietnam’s State Treasury failed to sell any government bonds this week because bidders sought higher yields than the Treasury was prepared to accept, the Hanoi stock market said.

Five bidders at the auction on Thursday sought to buy 600 billion dong ($34 million) worth of two-year bonds at yields of between 8.2-9.5 percent but the treasury’s ceiling was 7.6 percent, the exchange said in a statement.

Two bidders also sought 350 billion dong worth of five-year bonds at between 8.8-9.2 percent, well above the State Treasury’s ceiling of 7.9 percent. The exchange did not name any bidders.

The State Treasury had hoped to raise 1 trillion dong in the bond sale to big infrastructure projects, such as roads, bridges and ports.

At the previous auction of government Vietnamese dong-denominated bonds on March 12, the Treasury also failed to sell any two-year and three-year debt.

The government has pledged 17 trillion dong ($956 million) in economic stimulus, including loan subsidies. State media have reported that more such policies were in the works, but it was unclear how they would be funded.

Government bonds were an option if policymakers relaxed their stance on yields, the Vietnam News quoted former central bank governor and National Monetary Policy Consulting Council member Cao Sy Kiem on Wednesday as saying.

“If we want a more successful bond issue, the yield should be raised,” Kiem said. ($1=17,780 dong) (Reporting by Ho Binh Minh; Editing by John Ruwitch)