Sovereign Bond

Issuance
The Case of Vietnam
Thailand, 18 March 2011
 Outline
 Overview of Vietnam’s public debt and
Government external debts
 Mid-term objectives
 Summary of Vietnam’s recent
sovereign issuance
 Challenges for Vietnam
 Solutions for raising funds from
sovereign bonds
Overview on Public Debt of Vietnam
(as of December 2010)
 Public debt accounted for 56.7% GDP,
o.w:
• Government debt: 45.5% GDP, with:
 Domestic debt: 44%
 External debt: 56%
• Government guarantee: 10.6% GDP
• Local government debt: 0.6% GDP
Mid-Term Objectives
 Government External Debts
USD million

Outstanding Outstanding
At 31/12/2009 At 31/12/2010 (est.)

ODA and soft loans 22,554 94.0% 25,628 91.5%

Borrowings from
foreign investment
banks 350 1.5% 350 1.3%
Bonds and notes
holders 1,038 4.3% 2,020 7.2%

Total 23,943 100.0% 27,998 100.0%

Summary of Vietnam’s Recent
Sovereign Issuance
Issuer Government of Vietnam
Offering Size USD1,000 million
Coupon 6.75%
Yield 6.95%
Price 98.576%
Offer Spread UST +332.7
Pricing Date 25 January 2010
Settlement Date 29 January 2010
Maturity Date 29 January 2020
Distribution 144A/Reg S
Rating Ba3 (Moody’s) / BB (S&P)
Listing Singapore Stock Exchange
Book Runners Citi / Barclays Capital / Deutsche Bank
Distribution by Geography
Distribution by Investment
Types
Challenges for Vietnam
Solutions for Raising Funds
from Sovereign Bonds
 Road map for more regular sovereign issuance
 Developing channels for updating information on
Vietnam’s macroeconomy: updated website and
non-deal road show
 Examining international best practices on debt
management and policy development and lessons
learned from well-known international
organizations and countries that have successfully
managed sovereign debt
 Macroeconomic improvement for upgrading
sovereign credit ratings
Thank you