Vietnam has asked Deutsche Bank, HSBC and Standard Chartered to kick off a campaign to promote its upcoming international bond issuance to global investors, according to a press release issued by HSBC Wednesday.
The roadshow began on Wednesday.
There will be no public offering of the securities in the United States.
Any public offering of securities will be made by means of a prospectus issued by the Vietnamese government that will contain detailed statistical and economic data about Vietnam.
During a press briefing held in Hanoi on Aug. 28, Nguyen Van Nen, Minister and Chairman of the Government Office, said the country is considering issuing US$1 billion in new bonds to fund a plan allowing to cut the nation's interest payments.
Vietnam issued international bonds for the first time in 2005. At that time, the country raised $750 million on the New York Stock Exchange by selling 10-year bonds at a coupon rate of 7.125 percent.
The country’s second international bond issuance raised $1 billion on the Singapore Exchange in 2010. The 10-year bonds were issued with a coupon of 6.75 percent and entered the market with a yield of 6.95 percent.
Vietnam’s dollar bonds have been rated B1 by Moody’s Investors Service and BB by Standard & Poor’s with a stable outlook.