[Vnbiz] Bonds

[Craig Stevenson]

  Banks woo *Vietnam* for bond mandate

Asian bond bankers have been flocking to Hanoi, hoping to persuade the
Socialist Republic of *Vietnam* to return to the international bond market
sooner rather than later.

Some bankers believe *Vietnam* could issue by November, but next year may be
more likely.

Rivals will hope to break Credit Suisse's grip on the issuer. It roadshowed
a deal for the Ba3/BB− rated nation in 2001 and eventually led its first
bond issue in October last year.

It was a rare sole mandate and Credit Suisse earned a reputed 65bp fee --
far more than Indonesia or the Philippines pay.

The scarcity of *Vietnam's* credit and its exciting economic growth story,
made the deal a stunning success. The 10 year issue was increased from $500m
to $750m with $4.5bn of orders.

Priced to yield 7.125%, the bonds have tightened to 6.38%. One syndicate
banker suggested *Vietnam* could bring a new 10 year at around 6.5%.

That may be too tight for some investors. "We participated in the first
deal, which was fairly priced, but now it is just too tight," said one fund
manager in Singapore.

There were rumours that the finance ministry had been seeking proposals for
a deal, but one banker close to the borrower denied this, and said banks had
in fact been proactively pitching a new team of officials who took up their
posts after a government reshuffle in June.

"The new group is getting acquainted, particularly the finance ministry --
they are just getting to understand the landscape," said the banker. "I
don't expect anything imminent; they could do something late this year, but
I wouldn't be surprised if it wasn't until next year."
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