Vietcombank considers first public offshore bond issue

Vietcombank, Vietnam’s largest lender, is in discussions with foreign investment bankers regarding its first-ever public offshore bond issuance. Sources indicate the US dollar-denominated bond could potentially raise US$300 million and may be issued between November and March.

The move occurs as the Vietnamese government considers its own first overseas bond in over a decade. While one source suggested the bank’s transaction could serve to test investor appetite for a future sovereign bond sale, another source disputed any direct connection between the corporate bond and government plans.

Vietcombank is currently working to boost capital buffers to address rapid credit growth and tighter requirements. The bank has previously announced plans for new shares and loss-absorbing dong-denominated bonds, with total transactions estimated at approximately US$1 billion. This follows recent efforts by Vietnam’s finance ministry to gauge foreign interest in the country's sovereign debt.