Vietnam has no plans to issue sovereign dollar bonds as part of an upcoming investor roadshow, the Ministry of Finance (MoF) said on Friday, clarifying that the event is intended solely to provide economic updates and maintain relations with overseas investors.
In a statement posted on its website, the ministry said it is working with the State Bank of Vietnam, or the central bank, and relevant agencies to prepare a non-deal roadshow, or NDR, for international investors. The event will not involve an offer or issuance of international bonds.
NDR is a regular investor-relations activity aimed at updating international investors on Vietnam’s macroeconomic conditions, the ministry said.
The Ministry of Finance headquarters in Hanoi. Photo courtesy of VietNamNet.
The clarification came after Reuters reported on September 15, citing sources, that Vietnam is considering returning to the international bond market for the first time since 2014. The discussions were reported to include a potential $500 million to $1 billion, 10-year dollar bond, although no final decision had been made.
During the upcoming meetings, Vietnamese authorities are expected to provide investors with updates on the country’s socioeconomic development, fiscal and monetary policies, and public debt management, the MoF elaborated.
The ministry will also gather feedback from investors and assess their level of interest in Vietnamese government bonds.
“The size, maturity, and timing of an issuance will be considered and decided by the government at an appropriate time,” the ministry said, adding that any decision would take into account domestic development funding needs and conditions in domestic and international capital markets.
The MoF also plans to meet with international credit rating agencies as part of Vietnam’s efforts to improve its sovereign credit rating and ultimately reach investment-grade status. Officials will provide updates on macroeconomic developments, institutional reforms, infrastructure and public financial management, the ministry noted.
Regular engagement with international investors will help Vietnam prepare to diversify its funding sources and optimize borrowing costs if and when financing needs arise, the ministry added.
Vietnam, which targets annual economic growth of at least 10% through 2030, last sold sovereign bonds in international markets in 2014, when it issued $1 billion of 10-year notes with a 4.8% coupon.