Vietnam’s ICMA CAC first explained

Author: Ashley Lee | Published: 26 Nov 2014

Vietnam’s first foray into the international markets since 2010 included a rare switch tender. It also included the International Capital Markets Association’s new model collective action clause (CAC).

The $1 billion ten-year bond had a coupon of 4.8% - below the government’s target of 5.125%. The bonds generated an order book of over $10 billion, according to a HSBC press release.

Ratings agencies notched up the country’s credit rating this year; in July Moody’s upgraded it to B1, while Fitch upgraded it to BB- this month. That prompted the sovereign to return to the market to swap its two outstanding series of bonds due in 2016 and 2020.

The offering was notable both for its successful switch tender as well as for its...