The People's Committee of Can Tho City has just signed the Project to issue local government bonds of Can Tho City in 2024 . This project is implemented according to the Project on mobilizing finance and increasing budget revenue of Can Tho city for the period 2023 - 2025.
The goal of the Project is to mobilize more resources to invest in the construction of key projects of the city and invest in transport infrastructure projects connecting the Mekong Delta regions to adapt to climate change. .
Expected maximum bond issuance volume is 2,000 billion VND, of which, 1,000 billion VND is allocated for 2024 and 1,000 VND in 2025, ensuring it is within the total loan amount according to Resolution 45/2022/QH15 dated January 11. 2022 of the National Assembly on piloting a number of specific mechanisms and policies for city development and in annual local budget deficits decided by the National Assembly and assigned by the Prime Minister.
This bond has a term of 10 years and 15 years. The face value of the bond is 100,000 VND.
Accordingly, based on the interest rate framework announced by the Ministry of Finance and the market situation at the time of issuance, the City People's Committee decides the bond issuance interest rate for each issuance.
Can Tho City People's Committee can buy back bonds before maturity to reduce debt repayment obligations or to restructure debt.
There are two methods of issuing bonds, including the bidding method for issuance at the organization conducting bidding for Government debt instruments; or underwriting through securities companies, banks, and financial institutions with the function of providing services.
According to the Project, Can Tho plans to focus on issuing bonds in October 2024 with a volume of VND 1,000 billion associated with the disbursement progress of projects to ensure feasibility and efficiency of capital use.
