Ho Chi Minh City People’s Committee has decided to issue urban bonds worth total of VND2,000 billion in 2006. The five-year bonds are planned at 40% of the total issued bonds (about VND800 billion) while the remaining are ten-year and fifteen-year ones (about VND1,200 billion).
|Ho Chi Minh City is the first to issue urban bonds. (Photo: T.C.)|
The Ho Chi Minh City Finance Department and Ho Chi Minh City Investment Fund for Urban Development will make arrangements to issue urban bonds through an auction at the Ho Chi Minh City Securities Trading Center on April 25 (issuing bonds on April 27).
The interest rate on urban bond is pegged to that of the Government bond of the same term at the issuance plus market fluctuation regulated by the Finance Ministry.
Ho Chi Minh City People’s Committee organized a preliminary review of the three-year issuance of its urban bonds on April 21. Also, the Committee started preparations for the issuance of urban bonds in 2006.
After three years of city bond issuance, the city has raised VND6,000 billion, some of which has come from 17 commercial banks, eight insurance companies and other financial companies.