HANOI: Vietnam will issue international bonds worth about US$1 billion this year to raise money for major infrastructure projects, the government said on Thursday.

Prime Minister Nguyen Tan Dung said proceeds from the bonds with a maturity of between 15 and 20 years, would be used for construction of the Dung Quat oil refinery, a hydropower project and for the purchase of a cargo ship.

It will be made in three tranches, the first consists of government-issued bonds that will be used to lend to state enterprises, he said according to the government's website.

The other two would be state enterprise-issued bonds with or without government guarantees.

The prime minister has asked the finance ministry to finalise the bond issues for approval late this month, the website said.

Vietnam first issued 10-year international bonds worth US$750 million in 2005. Officials said the issue went beyond expectations as they received heavy orders from foreign investors in Asia, the US and Europe.


- AFP/so