HANOI: Vietcombank, Vietnam’s largest lender, is discussing plans with foreign investment bankers to issue its first-ever public offshore bond, three people familiar with the talks say.
The move comes as the government also weighs its first overseas bond in more than a decade and as domestic rivals rush to tap overseas funding to meet growing loan demand driven by the ruling Communist Party’s push for economic growth and infrastructure spending.
State-controlled Vietcombank is still finalising its plans, the three banking industry sources said, speaking on condition of anonymity because the information was not public.
One source said the bond would be denominated in US dollars, could be issued between November and March, and may raise US$300mil. Vietcombank did not respond to a request for comment.
Another source said Vietcombank had flagged in internal meetings that the transaction could help test investor appetite ahead of a potential future offshore sovereign bond sale by the government.
A second source disputed the account, saying the corporate bond had no connection with the government’s plans.
A Vietnamese state official said Vietcombank has been advising the government for months on a possible offshore sovereign bond issuance. The bank has publicly urged the government to issue offshore sovereign bonds. — Reuters
