Khanh Hoa officially issues 500 billion VND in 10-year bonds

On November 25, Khanh Hoa Provincial People's Committee announced information on issuing local government bonds in 2023.

In the announcement, Khanh Hoa provincial government said that the maximum bond issuance volume this time is 500 billion VND with a term of 10 years.

The face value of the bond is 100,000 VND with the following principal and interest payment methods: Principal is repaid once upon maturity for each issuance; Bond interest is paid periodically once a year.

The bond issuance date is December 4, 2023 with the issuance method of bidding issued at the organization conducting the bidding of government debt instruments.

Local government bonds issued by Khanh Hoa province aim to ensure the balance of development investment capital to implement programs and projects under the public investment plan approved by the Provincial People's Council according to regulations. Bonds are issued to offset local budget deficits. Bond repayment sources are guaranteed from the provincial budget.

Previously, in September 2023, the Department of Finance advised the People's Committee of Khanh Hoa province to report to the Ministry of Finance on the plan to issue the first batch of local government bonds with a volume of VND 500 billion in October for 3 projects in the medium-term public investment plan for 2021-2025.

These are the Dien Khanh District Inter-Regional Road Project; component project 1 of the Khanh Hoa - Buon Ma Thuot Expressway Construction Investment Project Phase 1 and the Upgrading and Expanding Project of Provincial Road 1B (section from Hyundai - Vietnam Shipbuilding Co., Ltd. to Ninh Tinh), Ninh Phuoc Commune, Ninh Hoa Town.

At the end of 2022, Khanh Hoa Provincial People's Council passed a Resolution on the preliminary project to issue local government bonds. The maximum bond issuance volume in 2023 is 1,000 billion VND.

After issuing 500 billion VND of bonds in the first phase, with the remaining volume of local government bonds of 500 billion VND, after the projects complete investment procedures and are included in the medium-term public investment plan for the period 2021-2025, the Department of Finance will continue to advise the People's Committee of Khanh Hoa province to report to the Ministry of Finance on the issuance volume to ensure regulations.

Source