Vietcombank Sets Sights on First Offshore US Dollar Bond

Vietcombank, Vietnam's largest lender, is exploring its first public offshore US dollar bond. The deal could raise around $300 million between November and March. This move comes as Vietnamese banks seek funding abroad due to rising credit demand, driven by the government's push for growth and infrastructure.

The timing of Vietcombank's bond issue may coincide with the finance ministry's efforts to sound out investors for a possible sovereign bond. However, no sale is imminent, according to the finance ministry, which cites high global bond yields as a concern. People familiar with the talks suggest that Vietcombank aims to gauge foreign demand ahead of any government deal.

A dollar bond would be one of several capital-raising plans for Vietcombank, including new shares and local-currency 'loss-absorbing' bonds. The lender seeks to strengthen its capital buffers under tighter rules and fast loan growth.