Fixed Income January 2022 - VST announces large G-bond issuance plan

- The Vietnam State Treasury (VST) plans to issue VND400tn (USD17.5bn) of G-bonds in 2022 — a surge of 43.4% from the issuance value in 2021. We estimate only around VND38tn (USD1.7bn) of G-bonds will expire in 2022, which would lead to a net issuance of VND362tn (USD15.9bn) for the year — nearly triple the amount seen in 2021 (VND127tn/USD5.6bn). Also, the VST plans to issue VND105tn (USD4.6bn) of G-bonds in Q1 2022. In Q1 2021, the VST planned to issue USD100tn (USD4.4bn) of G-bonds but only completed 39.2% of the plan.