## wpiea2020204-print-pdf

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### I. Introduction — Role and Relevance of Sovereign Investor Relations (IR)
- IR addresses financing of the public sector through contracting of loans and issuance of debt instruments.
- Sovereign IR adapts corporate and investment banking practices to the sovereign context to:
  - enable meeting the debt management objective from the Revised Guidelines for Public Debt Management (IMF-World Bank, 2014);
  - act as a first line of defense in financial crises and support financial stability;
  - minimize information asymmetries that can trigger negative investor perceptions and capital outflows;
  - facilitate creditors’ assessment of lending risks and help restore market access post-crisis (examples: Global Financial Crisis and the Covid-19 pandemic).
- IR is relevant across market development stages and creditor types, including for issuers without access to public capital markets and for both private non-marketable instruments and public marketable securities.

### II. Framework for Effective Sovereign IR — Definition, Purposes, and Empirical Support
- Definition (sovereign adaptation of NIRI): “A strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a sovereign, the financial community, and other constituencies, which ultimately contributes to a country’s debt securities achieving fair valuation.”
- Purposes in practice:
  - provide key economic, financial, and policy information relevant to debt management;
  - facilitate two-way dialogue with investors and gather market intelligence;
  - inform funding strategies and broader financial sector policy.
- Empirical findings cited:
  - Gelos and Wei (2005): international funds prefer more transparent markets.
  - Bernoth and Wolff (2008) and Kemoe and Zhan (2018): improved fiscal transparency leads to lower borrowing costs.
- IR generates broader economic spillovers: improved market access for corporates and potential FDI.
- IR as feedback: market intelligence informs medium-term debt management strategy and cost-risk tradeoffs.

### III. Core Principles and Operational Guidance for Sovereign IR
- Key principles (IMF, 2004): openness and transparency; availability and accessibility; timeliness; consistency and honesty; avoidance of surprises.
- Principle summaries:
  - Transparency — publish all information relevant to price formation in a suitable format.
  - Accessibility — make government and officials available to explain and consult.
  - Predictability — publish information timely and behave consistently to reveal the government’s reaction function.
  - Accuracy — produce accurate, comprehensive data supported by QA and formal sign-off.
- Operational guidance and constraints:
  - Presumption in favor of transparency; classify documents for official use only when public disclosure would not be in the public interest and subject to legal exemptions.
  - Controlled and simultaneous release of material nonpublic information to avoid selective disclosure.
  - Procedures to ensure accuracy: automation, double entry debt recording, QA, internal/external audit.
  - Maintain communication during adverse developments; honest explanation and corrective measures mitigate detrimental effects.

### IV. Institutional Arrangements and Resourcing (Box 1)
- Primary IR function tasks:
  - maintain active contact with investors, creditors, intermediaries, CRAs and analysts;
  - keep stakeholders apprised of economic and fiscal management, debt portfolio and financing plans;
  - collect and coordinate publication of macroeconomic/financial information, manage contacts database, draft and distribute debt reports and marketing materials, and maintain an investor-focused website.
- Institutional models:
  - Dedicated Investor Relations Office (IRO) or IR staff integrated within the DMO; choice driven by resources, scope, and budget impact.
  - Advanced economies: IR often grows organically within DMO; emerging markets with active programs trend toward standalone IROs (examples: Brazil, Mexico and Turkey).
- Staffing and governance:
  - IRO often headed by a senior debt manager reporting to the head of the DMO.
  - Junior staff produce bulletins, coordinate across agencies; final dissemination authorized by IRO head.
  - Job descriptions and annual performance assessments should reference IR duties.
  - Costs and typical IR expenses: staff time; website design and maintenance; travel for conferences and roadshows; publication and printing costs; translation or teleconference services.
- Skills and access:
  - IR staff need (i) strong economic and financial expertise; (ii) solid communication skills in English and domestic language(s); (iii) appropriate soft skills.
  - Senior IR staff must have direct access to policymakers and authority to speak on economic, financial and debt developments.
- Coordination and political support:
  - High-level ministerial support is critical; communications should be apolitical.
  - Distinguish IR from press office functions.
- Key counterparts: Central Bank, Ministry of Finance, National Statistics Office — require data access and senior interactions.
- Data standards and debt recording:
  - Subscription to IMF SDDS facilitates international provision of information; e-GDDS can be a pathway; SDDS Plus is the highest standard.
  - Debt recording: centralized single database covering domestic and external debt, ideally including contingent liabilities; specify scope (central government vs general government).
  - Integration with IFMIS recommended; effective recording/reporting may require IFI assistance in low and lower-middle income countries.
- Primary Dealers and investor outreach:
  - Primary Dealer (PD) systems help communication and intermediation; PDs should support DMO IR initiatives.
  - Presence of PDs does not remove need for DMO to engage end-investors directly.
- Domestic vs non-resident investor engagement:
  - Communications should be consistent but tailored by investor type, frequency and content.
  - Domestic investors: focus on local currency securities and local-language sources; banking sector often dominates.
  - Non-resident investors: focus on public foreign currency debt and English-language sources; pay attention to macro, financial stability, reserves and BoP data.

### V. Debt Management Website and Communications (Box 2)
- Website core features and functionality:
  - well-organized layout, navigation, timely simultaneous English and home-language information, facility to contact IR team and join mailing list, links to other relevant public agencies, access to third-party opinions and IFI/CRA reports.
  - Comprehensiveness is critical; gaps undermine confidence.
- Aggregation and ownership:
  - When responsibilities are shared, information should be aggregated on a single debt management website; option to establish an independent website to which multiple parties contribute.
- Consultations and outreach:
  - Regular market consultations and periodic investor meetings (example frequencies: regular e.g., quarterly with PDs; semi-annual or annual for lower-borrowing issuers).
  - Roadshows: deal-related, non-deal, and reverse roadshows; typical locations include leading financial centers such as London and New York.
  - Conference calls/videoconferencing: useful substitute for travel, can be organized in as little as 48 hours; typical duration around 60 minutes; should be recorded and uploaded to website.
  - Conferences, seminars and investor education: raise domestic financial literacy, partner with banking/brokerage community, securities regulator, central bank, stock exchange.
- Publications: purpose and standards
  - Publish reliable, non-partisan materials in local language and English simultaneously; narrative must be factually correct and explain current public debt levels, cost and risk dynamics, historical context and forward-looking portfolio changes.
- Core publications and frequencies (Table 1 examples):
  - Debt Management Strategy — Annual
  - Annual Borrowing Plan — Annual
  - Debt Management Report — Annual
  - Investor Presentation — Annually/Semi-Annual/Quarterly
  - Issuance Calendar — Quarterly/Monthly
  - Debt Statistics Bulletin — Quarterly
  - Operational Documents — Static - updated as required
  - Prospectuses — In advance of issuance
  - Issuance Results — Directly after issuance
- Debt Management Strategy specifics:
  - horizon: three- to five-year; includes objectives, macro environment, analysis of existing stock, key risk factors, targets for composition and cost/risk indicators (example target: maintain average maturity at 5 years).
  - revise annually and update in-year if assumptions are invalidated.
- Statistical bulletin guidance:
  - short (ideally no more than four pages), produced quarterly, provide central/public debt stock breakdowns, redemption profile, cost and risk indicators, minimum of two time periods, underlying data in time series format.
- Operational documents and legal/regulatory transparency:
  - publish operational manuals or link to them; include structural outlines (issuance mechanisms, custody, clearing, payments, taxation, settlement) in materials.
- Self-assessment and IIF evaluation:
  - periodic evaluation against performance criteria (examples: number of new investors in offerings, number of new investor meetings, data requests).
  - IIF evaluates sovereign IR and data dissemination using 20 IR criteria and 23 data dissemination criteria, with an index framework and weighting system.

### VI. IR in Periods of Distress and Crisis (Box 3 — Indonesia Covid-19 example)
- Crisis outreach modalities:
  - Indonesia increased IR outreach during Covid-19 with conference calls and videoconferencing led by senior officials (Governor of the Central Bank; Minister or Vice Minister of Finance).
  - Frequency during crisis: twice weekly during high volatility; thereafter every two weeks as turmoil reduced.
  - Mid-March 2020 to end-July 2020: IRU conducted 17 investor conference calls.
  - Participant numbers on those calls ranged from 92−391 participants from Asia, Europe, and the United States.
  - Prior to the pandemic, calls were quarterly with 20-50 participants.
- IRU institutional arrangement and practices:
  - Formed by agreement among Coordinating Ministry for Economy Affairs, Ministry of Finance, and Bank Indonesia; IRU coordinates closely with the Ministry of Finance but is not situated within public debt managers’ department.
  - Publishes monthly investor “Presentation Book”; quarterly investor calls in February, May, August and November aligned with quarterly GDP data releases.
  - Since June 2020, Presentation Book includes chapter on sustainability and climate change mitigation.
- Outcomes:
  - Proactive IR reduced information asymmetries and may have indirectly eased capital outflow pressures, reducing exchange rate pressures during the crisis.
- Implementation challenges and responses:
  - Requires broad government commitment, resources, IT infrastructure, human capital and time; benefits can be cost-effective if IR reduces borrowing costs or financing risks, but timing and certainty of benefits vary.
  - Progress can be slow; traction with investors may take a year or two; IR is a long-term commitment.

### VII. Website Language, Dissemination Standards and IR Activity Criteria (Section 3)
- Website language and linking:
  - An IRO website in English suffices; otherwise both Central Bank and Ministry of Finance/Treasury websites must be in English.
  - Reciprocal links among IRO, Central Bank and Ministry of Finance websites are required.
- Investor registration and subscription:
  - Investors can register on IRO/Central Bank/Ministry websites to receive data releases, policy information, and notices.
- SDDS requirements and data dissemination:
  - Country must subscribe to IMF SDDS.
  - SDDS prescribes four dimensions: (1) data coverage, periodicity and timeliness; (2) public access; (3) data integrity; (4) data quality.
  - Authorities must disseminate key data on central government operations, central government debt, and external debt timely.
- Presentation requirements:
  - Data should be Excel-manipulable and include time series; policy information must be available in English; forward-looking policy info should include comprehensive economic outlook reports; presentation of debt management strategy is encouraged.
- IR activity criteria (IIF-aligned; criteria 12–20):
  - Maintain an active investor contact list, ideally updated at least twice annually.
  - Distribute policy/macroeconomic information to investor list via email at least every two weeks.
  - Provide a general email box or HTML form on website; responses should be received within 36 hours.
  - Conduct bilateral meetings with investors regularly.
  - Conduct one or more non-deal roadshows annually.
  - Conduct public investor conference calls at least every quarter (publicly announced, led by IRO head/senior department heads).
  - Maintain archives of investor presentations and conference call materials (replays, presentations, transcripts).
  - Reflect investor feedback in policy decisions; senior policymakers should have taken market input into account.
  - Senior policymakers must participate in at least two of: conference calls, bilateral meetings, non-deal roadshows.
  - Conduct annual self-assessments of IR activities (via investor surveys or representative samples).

### VIII. Case Studies: Restoring Market Access (Annex III — Ireland, Portugal, Cyprus)
- Ireland (lost market access; EU-IMF program 2010; reaccess strategy 2011 onwards):
  - Actions: analyze investor base; maintain PD relationships; remain active in Euro Commercial Paper market; conduct non-deal roadshows beginning May and June 2011; thereafter twice-annual visits to main investor centers and at least one visit to Asia and Middle East.
  - Communication: non-deal roadshows, reverse roadshows, conference calls, email updates; consistent and realistic messaging on recovery path, banking reforms and fiscal consolidation.
- Portugal (EU assistance April 2011; exit scheduled Q2 2014):
  - Investor base changed; new investors (e.g., US hedge funds) became active.
  - Outcomes: 10-year USD issue for USD 4.5 billion; new long-maturity syndicated issuance including a 15-year benchmark (September 2014); dual tranche 10- and 30-year deal (January 2015).
  - PD network expanded; stronger PD appraisal terms to broaden investor base.
- Cyprus (lost market access June 2011; re-accessed June 2014):
  - Crisis prompted objective IR strategy with continuous outreach and regular data publication.
  - Actions: broadened non-deal roadshows; conference calls; quick, efficient investor responses; education on economic situation; transparent performance under adjustment program.
  - Credit rating constraints: low (non-investment grade) ratings and negative outlooks impeded market access; DMO appointed CRAs and acted as liaison with government and CRAs.
  - Policy: mandatory cash buffer rule to meet financing needs for at least the next 12 months on a rolling basis.
  - Forward-looking IR: broaden investor pool geographically and by investor type; use feedback to inform issuance strategy.

*Source: wpiea2020204-print-pdf*

### 1. Key Debt Management Publications ...................................................................................2

### I. INTRODUCTION

### What is Investor Relations (IR) and why is it relevant to debt management?
- Investor Relations (IR) addresses the financing of the public sector through the contracting of loans and issuance of debt instruments (footnote 1).
- Corporate IR roots: modern corporate IR traces to the 1950s and the decision to create a shareholder communication function at General Electric in 1953.
- Sovereign IR: a relatively modern, formalized phenomenon; debt managers have adapted corporate and investment banking practices to sovereign contexts.
- Role of IR:
  - Enables meeting the debt management objective as discussed in the Revised Guidelines for Public Debt Management (IMF-World Bank, 2014).
  - Acts as a first line of defense in times of financial crisis and in support of financial stability (IMF, 2004), consistent with the Stockholm Principles for debt management (IMF, 2010).
  - Minimizes information asymmetries that might lead to negative investor perceptions and potential capital outflows.
  - Facilitates creditors’ effective assessment of lending risks and, post-crisis, helps restore market access (example contexts: Global Financial Crisis and the Covid-19 pandemic).

### Sovereign IR within broader transparency and governance frameworks
- Sovereign IR is part of debt transparency and good governance and serves creditors, the broader financial sector, legislators, the public, and the international community.
- Fiscal transparency:
  - Comprehensive and reliable reporting on public finances is critical for fiscal management and public accountability.
  - The IMF’s Fiscal Transparency Code (2019) is the international standard for fiscal transparency practices.
- Central bank transparency parallels:
  - Greater central bank transparency has been a major policy shift (Dincer and Eichengreen, 2011 and 2014).
  - The IMF (2019) proposed a new Central Bank Transparency (CBT) framework, reflecting strengthened mandates after the Global Financial Crisis.
- International efforts: sovereign IR is a critical building block in international efforts to strengthen public debt transparency (IMF-World Bank, 2018).

### External guidance and evaluation criteria
- Institute of International Finance (IIF) contributions:
  - IIF has developed and implemented a set of 20 criteria for evaluating IR and 23 criteria for evaluating data dissemination practices (reproduced in Annex I).
  - IIF’s Investor Relations Best Practices (2005) provide a practical starting point for authorities designing an IR strategy.
  - IIF (2005) defines an Investor Relations Office (IRO) as “a one-stop shop through which authorities can provide investors relevant data and information from the diversity of official sources, and investors can access relevant policymakers and provide policy feedback.”

### Progress, institutional arrangements, and country practice
- Implementation progress over the last decade: an increased number of sovereigns have developed and implemented Investor Relations Programs (IRPs) or specialized Investor Relations Offices (IROs).
- Institutional arrangements vary significantly according to market development and domestic debt management structures.
- Annex I provides country examples: organizational arrangements, objectives and practices in Brazil, Indonesia, Mexico, the Russian Federation and Uruguay (five country examples).

### Applicability across market development stages and creditor types
- IR practices are relevant at all stages of market development, including for issuers without access to public capital markets.
- IR applies across instruments:
  - Private non-marketable instruments (e.g., loans, bilateral credit facilities).
  - Public marketable securities (e.g., domestic Treasury bills and bonds, Eurobonds).
- All categories of creditors are conceptualized as “investors” in the state; governments should tailor IR approaches by investor type.
- For countries without market access, communication with main lenders (multilateral development banks and bilateral creditors) is as important as communication with holders of debt securities.

### Purpose and structure of the paper
- Objective: root sovereign IR within the debt management policy framework and translate that into effective IR practices that contribute to delivering the debt management objective of cost-effective financing subject to risk.
- focus: define sovereign IR, set an overall IR framework aligned with institutional capacity and market development, and detail practices integral to effective IR for DMOs.
- Organization:
  - Section II develops a framework for sovereign IR, including definition in the context of the debt management objective.
  - Section III examines key counterparties within the IR framework.
  - Section IV sets out detailed good practices for sovereign IR undertaken in a Debt Management Office (DMO).
  - Section V draws (continues beyond provided excerpt).

*Source: wpiea2020204-print-pdf - I. INTRODUCTION*

### conclusions and summarizes challenges facing debt managers seeking to implement IRPs.

### II.   A FRAMEWORK FOR EFFECTIVE SOVEREIGN IR

### A. Defining Investor Relations in a Sovereign Context
- Sovereign IR reframes the NIRI definition for corporates as: “A strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a sovereign, the financial community, and other constituencies, which ultimately contributes to a country’s debt securities achieving fair valuation.”
- Guimard’s ‘seven keys to successful IR’ (2008) apply to sovereigns: clearly defined goals, commitment of management, organizational efficiency, quality information systems, understanding of and compliance with legal obligations, and an ability to anticipate future changes in financial communications.
- IR aims to push toward a strong form of the Efficient Market Hypothesis (EMH). Fama (1970:383): “a market in which prices always ‘fully reflect’ available information is called ‘efficient’.”
- Sovereign IR aligns with the standard objective for public debt management as stated in the Revised Guidelines for Public Debt Management (IMF-World Bank, 2014): the “main objective of public debt management is to ensure that the government’s financing needs and its payment obligations are met at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk.”
- Purposes of sovereign IR in practice:
  - provide key economic, financial, and policy information relevant to debt management;
  - facilitate two-way dialogue with investors;
  - obtain market intelligence relevant to debt management;
  - develop and implement funding strategies and broader financial sector policy.
- Empirical findings cited:
  - Gelos and Wei (2005): international funds prefer more transparent markets.
  - Bernoth and Wolff (2008) and Kemoe and Zhan (2018): improved fiscal transparency leads to lower borrowing costs.
- Broader economic benefits:
  - increased transparency through IR can generate spillovers to the real sector via greater market access for corporates and potential foreign direct investment (FDI).
- IR as a feedback mechanism:
  - market intelligence gathered through two-way communication informs medium-term debt management strategy and cost-risk tradeoffs.

### B. Core Principles for Effective Sovereign IR
- IMF (2004) summarizes IR principles: openness and transparency, availability and accessibility, timeliness, consistency and honesty, and avoidance of surprises.
- Key principles (summarized):
  - Transparency – the publication of all information, data and decisions relevant to price formation in a suitable format.
  - Accessibility – the availability of government and its officials to explain information, data and decisions, and to consult on policy and decisions as appropriate.
  - Predictability – publishing information on a timely basis and engaging in a consistent pattern of behavior that enables external stakeholders to understand the government’s reaction function.
  - Accuracy – producing data and information that is as accurate and comprehensive as possible, supported by procedures and processes to ensure quality.
- Operational guidance and constraints:
  - Presumption in favor of transparency: effective publication of all government documents and data; classify a document for official use only if disclosure would not be in the public interest (as allowed by law and subject to relevant exemptions for privacy, confidentiality, and security).
  - Openness includes access to officials and encouragement of open dialogue (meetings, conferences, telephone, email), but IR must be proactive—moving from explanation to consultation to refine policies.
- Market conduct and regulatory considerations:
  - Sovereign IR retains the notion of “securities law compliance” despite different regulatory statuses of government debt managers; DMOs operate in regulated financial markets and issue securities that must comply with regulatory requirements domestically or in the markets where sold.
  - Material nonpublic information (e.g., debt management strategy and issuance plans) should be released in a controlled and simultaneous manner to avoid selective disclosure and undermining price formation.
- Resourcing, timeliness, and accuracy:
  - Publication schedules should reflect available resources and staff capacity; adequate resourcing is emphasized.
  - Procedures to improve accuracy: automate calculations where possible, use double entry for debt recording systems, employ quality assurance (QA) and formal sign-off prior to publication.
  - Effective internal and external audit is necessary to ensure procedures are followed and information accuracy (see Intosai (2018) referenced).
- Communication during adverse developments:
  - Maintain flow of information even when news is negative; interruption of communication is more detrimental than clear communication about adverse developments.
  - Honest explanation and announcement of corrective measures can lessen detrimental effects; proactive IR can help mitigate potential financing crises and support market access during difficult periods.

### C. Institutional Arrangements for IR
- Primary role of an IR function:
  - establish and maintain active and regular contact with investors, creditors, financial intermediaries, credit rating agencies and credit research analysts;
  - keep stakeholders appraised of government economic and fiscal management, debt portfolio and future financing plans;
  - collect and coordinate publication of relevant macroeconomic and financial information, manage a contacts database, draft and distribute regular debt reports and marketing materials, and design and maintain an investor-focused website.
- Institutional models:
  - Some issuers establish a dedicated Investor Relations Office (IRO); others draw IR staff from existing parts of the Debt Management Office (DMO).
  - Advanced economies: IR activities often grow organically out of existing debt management functions (see Dooner and McAlister, 2013).
  - Emerging economies with active financing programs: trend toward standalone IROs (examples include Brazil, Mexico and Turkey).
- Decision drivers for standalone IRO vs integrated IR function:
  - resources available;
  - anticipated scope of IR activities;
  - budget impact on DMO; standalone IROs may have higher overheads if staff are not fungible with other functions.
- Scale alignment:
  - Less active and relatively small sovereigns may engage investors less frequently and may not need a dedicated IRO.
  - In smaller markets, non-resident banks may not dedicate resources to covering the government; marketing initiatives may rest solely with the DMO.
  - The scale of the IR function should align with the government’s debt portfolio and ambitions to increase or expand its domestic and non-resident investor base.

*Source: conclusions and summarizes challenges facing debt managers seeking to implement IRPs. wpiea2020204-print-pdf - conclusions and summarizes challenges facing debt managers seeking to implement IRPs.*

### Box 1. Organizing and Staffing an Investor Relations Office

### Box 1. Organizing and Staffing an Investor Relations Office

### Placement and Institutional Structure
- An IRO should be based within the same department or division as those officials responsible for managing the public debt, regardless of whether debt management is managed within a ministry of finance, central bank or through an independent government agency.
- Close proximity between the IRO and the rest of the debt management function is necessary to facilitate co-ordination and cooperation to sustain accurate, regular and timely communication on the government’s debt management activities.
- The overall number of staff within the IRO is a function of the scale of the government’s overall debt portfolio, size of outstanding debt and future borrowing plans.
- IROs are often headed by a senior debt manager, who may also be the head of the front office, reporting to the head of the DMO and overseeing daily IR strategy implementation and external stakeholder interaction.
- Figure 1 (DMO organogram) highlights potential close links and overlap between IRO and the front office functions (e.g., Market Analysis; Managing Investor Relations; Maintaining IR Website; Formulation of Debt Management Strategy; Risk Modeling; Debt Recording; Payments and Settlements).

### Staffing Roles, Responsibilities and HR Practices
- Production of bulletins, reports and marketing materials is typically the role of junior IRO staff.
- Coordination with DMO colleagues and partners across government (e.g., the central bank and national statistics office) is necessary to gather and frame content; interactions can be managed by junior staff with final publication and dissemination authorized by the IRO head after internal approvals and reviews.
- The IRO head should maintain an HR plan to allocate roles, delegate responsibility, and identify supporting cover for key IR roles in advance.
- Job descriptions for IR staff should set out IR responsibilities and individual duties within the overall strategy; annual personnel performance assessment reviews should reference execution of specific IR duties.
- In governments with limited needs, the IRO head may also be the head of the DMO and/or the front office head; front office team members may combine duties and spend a portion of time on IR matters.
- Delivering IR is year-round and often led by a senior manager in the front office when no formal IRO exists.

### Budget, Costs and Resourcing
- The costs of an IRP, whether integrated or delivered through a dedicated IRO, should be a standard line item for inclusion in the DMO’s annual budget discussions with central government.
- Typical IR-related expenses include:
  - staff time dedicated to IR work
  - initial website design and ongoing management and maintenance
  - logistical arrangements for international travel for conferences and roadshows
  - publication and printing costs
  - sometimes translation or teleconference services
- Even when integrated into day-to-day DMO activities, IR can substantially increase DMO workload, requiring sufficient budget and staffing.

### Skills, Qualifications and Access
- IR staff need skills to interact professionally with investors and financial intermediaries, including:
  - (i) strong economic and financial expertise;
  - (ii) solid communication skills in English and the domestic language(s);
  - (iii) appropriate soft skills to interact professionally with a range of counterparts.
- IR staff should develop a personal dialogue with investors to gain market sentiment insights.
- Professional finance qualifications by IR staff can act as a useful signaling tool to external stakeholders regarding competence.
- Senior IR staff need direct access to policymakers and the ability to speak with confidence and authority on economic, financial and debt management developments.

### Coordination, Political Support and Boundaries with Press
- High-level support from ministers and senior officials is critical for developing and sustaining an effective IRP; senior government approval for IR strategies can cement broad government accountability.
- Communications should be apolitical and enjoy broad support across government.
- Distinction between an IR function and a press office:
  - IR and press should be kept separate because they address different audiences, produce different types of content and require different skill sets.

### Key Counterparties and Coordination Across Government
- The three most important counterparts to effective sovereign IR are the Central Bank, the Ministry of Finance and the National Statistics Office.
- IR staff need access to data and information from these institutions and the ability to interact with their senior policymakers.
- Effective sovereign IR requires collaboration and data sharing across government and coordination with many agencies when expanding reporting beyond central government debt.

### Data Standards and Transparency
- Subscription to the IMF’s Special Data Dissemination Standard (SDDS) facilitates provision of information relevant for international financial market participants; SDDS was established in 1996.
- The enhanced General Data Dissemination System (e-GDDS) (IMF, 2015) can be a pathway to SDDS subscription.
- The SDDS Plus, established in 2012, is the highest standard of data dissemination.
- The IMF produces Annual Observance Reports of dissemination practices of every SDDS and SDDS Plus country.
- Studies cited find that subscribing to IMF data standards can reduce issuance spreads for EM sovereigns.

### Debt Recording and Quality of Debt Data
- Comprehensive and easily accessible debt data is a precursor to effective IR; core components include statistics on the country’s public debt portfolio.
- A debt management recording system should be managed centrally, with DMO staff maintaining debt records in a single database covering all domestic and external debt, and where possible data on contingent liabilities.
- In practice, most DMOs manage central government debt; expanding coverage to general government or public sector debt can be challenging, especially for liabilities or guarantees contracted by state/local government or SOEs.
- If focusing initially on central government debt, the scope of public debt should be clearly specified (e.g., central government vs. general government).
- Components of general government debt may include marketable government securities, bilateral or concessional loan contracts, social security or state pension programs, government liability for debts of state and local governments, public corporations or SOEs, accounts payable, guarantees or contingent liabilities.
- Particular care is required to capture liabilities from other instruments, such as derivatives.
- Integration of data provision through government systems, including an Integrated Financial Management Information System (IFMIS), can facilitate accurate data sharing.
- Effective debt recording and reporting can be a significant challenge in low and lower-middle countries and may require assistance from IFIs.

### Primary Dealers, Investor Segmentation and Outreach
- A Primary Dealer (PD) system can be an important conduit for communication with end-investors and provide intermediation services for government securities sales; PDs typically have obligations to support DMO IR initiatives.
- PDs can gather feedback and market intelligence, but in less developed markets PDs may be significant investors and their feedback could be influenced by their positions.
- The presence of a PD system does not remove the need for the DMO to engage proactively and directly with end-investors.
- DMOs should ask PDs to support marketing efforts (e.g., hosting investor meetings, arranging roadshows, preparing and distributing investor presentations, hosting financial literacy seminars or conference calls).
- In smaller markets without a formal PD framework, more IR work is required of the DMO, with implications for efficiency, productivity and budget.

### Domestic versus Non-Resident Investor Engagement
- Communications with domestic and non-resident investors should be consistent but tailored in frequency, type and scope.
- The frequency and scale of IR interaction should reflect the government’s existing debt stock and medium-term debt management strategy.
- Domestic investors typically focus on local currency securities, use local language sources, and may be better informed on the home economy; the banking sector typically dominates the domestic investor base in developing and emerging economies.
- Non-resident investors generally focus on public foreign currency debt, consume English-language sources, and pay close attention to macroeconomic, financial sector stability, central bank foreign exchange reserves, and balance of payments data.
- Developing IR practices for non-resident investors can improve the cost and risk trade-off in debt management by extending maturity profiles, albeit increasing foreign exchange risk.
- When targeting international investors, authorities should adopt market-based international standards in data transparency to satisfy prospectus requirements for international bond issuance.

### Credit Rating Agencies, IFIs and Publication Practices
- IR staff should actively manage relationships with Credit Rating Agencies (CRAs), participate in CRA visits, and ensure consistency between information provided to CRAs and public disclosures.
- For countries without credit ratings, IMF Article IV consultations and the Staff Report (including Debt Sustainability Analysis) provide valuable information to investors; authorizing publication of the Staff Report can improve understanding by non-resident investors.

### Parliament, Public, Press and Data Vendors
- An effective IRP can promote fiscal accountability and transparency in debt management and support legal requirements for disclosure to legislature and the public.
- For retail debt programs, IRPs should cover the general public with relevant material, distinguishing IR functions from broader financial literacy responsibilities.
- IR staff should liaise appropriately with government press officers when policies affect debt management and financial market issues.
- IROs should maintain relations with information and data vendors (e.g., Bloomberg and Reuters) to ensure accurate dissemination of debt-related announcements, including complex liability management actions.

### IR Strategy, Communications Plan and Contact Management
- An IRP should be undertaken within a formal IR strategy aiming to position the DMO’s IRP as the government’s primary vehicle for information provision to investors and stakeholders.
- The strategy should be collaborative across IR, other DMO parts and relevant government stakeholders, reviewed regularly and supported by a communications plan with a published publication timetable.
- Managing contact information:
  - A continuously updated database of investor contacts is essential; standard fields include name, title, company, email and postal address, telephone number, and ideally fields for history of investing and last interaction date.
  - Contact lists should cover current domestic and non-resident investors and potential investors met during roadshows, conferences or seminars.
  - More sophisticated Customer Relationship Management (CRM) approaches may offer benefits for active borrowers with large portfolios, though CRM implementation can be costly and time consuming.
  - Any database storing personal information must comply with personal data management regulations (e.g., the General Data Protection Regulation (GDPR) in Europe).

### Means of Communication and the Debt Management Website
- An IR strategy should use all available communication means, including email and a dedicated website, to share information relevant to debt management.
- Electronic publications must also be readily available on the website and accessible later.
- The debt management website is expected to be the single access point for all data, forecasts, presentations, press releases, issuance results and publications related to debt management and the country’s credit story.
- Website content should present data in suitable formats (e.g., comma-separated values) for download, include historical time series archives, current and prior investor presentations, debt bulletins, debt management strategy documents, annual borrowing plans, issuance results, and voice or video recordings of conference calls where possible.
- The website should also contain relevant information and legislation (or suitable links) that set out the legal basis for debt management.

*Source: wpiea2020204-print-pdf - Box 1. Organizing and Staffing an Investor Relations Office*

### Box 2. Key Components of an Effective Debt Management Website

### Box 2. Key Components of an Effective Debt Management Website

### Website functionality and core features
- Functionality – the website should have a well-organized layout and a clear presentational style. Initial emphasis should be on function over form.
- Navigation – easy to navigate and intuitive to use, with clear sign-posting of information to make it easy for users to access a range of information.
- Timeliness – information in both English and the country’s home language has to be available to all stakeholders simultaneously so as to provide equal access to data, forecasts and information.
- Ability to establish contact – a website needs to include a facility to send questions or comments to the debt management team, and to enable viewers to join the mailing list for future publications and press releases. Named IR individuals facilitates contact.
- Links to other government entities – it should contain links to websites of other relevant public agencies and contact names.
- Access to third-party opinions and analysis – users should be able to find credit rating agency reports and commentary from IFIs, such as the IMF or World Bank.
- Comprehensiveness – gaps in the regular delivery and/or visibility of fundamental reports and publications will undermine the website’s value and lead to uncertainties about the overall state of the government’s commitment to professional debt management.

### Aggregation and ownership when responsibilities are shared
- Where the responsibility for debt management is shared amongst different institutions, information should be aggregated on a single debt management website.
- The website should be a comprehensive single source of information for those seeking to invest in the government’s debt.
- Information should be aggregated on this website from across government as necessary—otherwise an interested investor has to spend significant time finding all the relevant information they need.
- The inclusion of relevant links can be an intermediate step, but ideally the website should be as comprehensive as possible in terms of documents and data.
- Key challenge: determining which government institution has ownership of the website when debt management functions are undertaken by both the Ministry of Finance and the Central Bank.
- Option: establish an independent website to which both parties can contribute.

### Consultations and consultation meetings
- Market consultation is critical to effective debt management; debt managers need a good understanding of likely demand through proactive consultation with investors.
- Periodic consultations with investors and intermediaries enable debt managers to keep abreast of specific concerns and preferences for issuance.
- A regular schedule of consultation meetings with end-investors is good practice.
  - Example frequencies: regular (e.g., quarterly) meetings with market participants such as primary dealers and other investors.
  - For issuers with lower borrowing requirements, semi-annual or annual meetings may be more suitable.
- Feedback from market participants can broaden the scope of information a DMO provides and can be channeled back to senior policy makers to improve explanations or prompt further publications.

### Debt management roadshows and conference calls
- Roadshow purpose: provide an update on the country’s credit outlook and funding strategy; allow investors to see and question policymakers in person and assess sincerity and credibility.
- Senior policy maker participation can promote trust between policymakers and investors.
- Roadshow categories:
  - (i) deal-related roadshows: undertaken shortly before a specific public benchmark bond issue.
  - (ii) non-deal roadshows: independent of a specific funding operation.
  - (iii) reverse roadshows: DMO hosts investors in the borrower’s home country.
- Typical locations for (i) and (ii): leading financial centers (such as London, New York).
- Frequency guidance:
  - For less active issuers, an annual roadshow often suffices.
  - Debt management officials should still engage one-on-one with investors throughout the year.
- Conference calls (including videoconferencing):
  - Can complement roadshows or be used as an alternative when travel is limited (for example during the Covid-19 pandemic).
  - Should be chaired by senior debt management officials, with senior policy makers attending where relevant.
  - Useful at very short notice; calls can be organized and executed in a relatively narrow time span, sometimes as short as 48 hours.
  - Typical duration: around 60 minutes.
  - Require suitable telephonic or web conferencing infrastructure (with sufficient bandwidth).
  - Ideally calls should be recorded and uploaded to the DMO’s website for replay along with any associated materials.

### Conferences, seminars and investor education
- Financial sector conferences broaden a government’s profile and attract domestic and non-resident investors, intermediaries, credit analysts and the financial press.
- Opportunities at conferences: keynote addresses, panel participation, dedicated investor presentation sessions, and speed dating bilateral meetings.
- In less developed economies, local investor base may lack financial literacy, constraining issuance volume or maturity aspirations.
- Raising financial literacy should be a shared concern of the DMO and partners (banking/brokerage community, securities regulator, central bank, stock exchange).
- DMO actions:
  - Seek partners to host seminars for domestic investors.
  - Target seminars at legislature, press and non-financial government specialists to improve awareness of debt management policy and domestic capital market development.
- Seminars can increase transparency, predictability, fair valuation of government securities, and potentially minimize the cost of borrowing, subject to risk.

### Debt management publications: purpose and standards
- Publications are opportunities to market the sovereign; they should be organized and presented to be easy to use and intelligible.
- Reports should include narrative explaining current public debt levels, cost and risk dynamics, historical context, and forward-looking statements on potential portfolio changes.
- Publications should be released in the local language and English simultaneously.
- All publications should be highly reliable, non-partisan and provided on a regular and timely basis.
- Narrative must be factually correct and avoid distortions or overoptimistic assessments.
- Many DMOs update reports and investor presentations just after the government’s annual budget cycle is approved and published.

### Core publications and typical frequency
- The frequency of documents varies with the nature of underlying data and narrative. At a minimum, investors expect regular updates on economic, fiscal, and debt management operations.
- Table 1. Key Debt Management Publications (publication — frequency):
  - Debt Management Strategy — Annual
  - Annual Borrowing Plan — Annual
  - Debt Management Report — Annual
  - Investor Presentation — Annually/Semi-Annual/Quarterly
  - Issuance Calendar — Quarterly/Monthly
  - Debt Statistics Bulletin — Quarterly
  - Operational Documents — Static - updated as required
  - Prospectuses — In advance of issuance
  - Issuance Results — Directly after issuance

### The Debt Management Strategy, Annual Borrowing Plan, and Issuance Calendar
- Debt Management Strategy:
  - The most critical debt management publication; explains approach over a three- to five-year horizon.
  - Typical content: objective and scope, current and expected macroeconomic environment, analysis of existing stock of debt, factors underlying choice of strategy, key risk factors, targets for composition of issuance or cost and risk indicators (e.g., setting a target to maintain the average maturity of the debt portfolio at 5 years).
  - Should be revised on an annual basis and may be updated in-year if material shifts invalidate assumptions.
  - Publication increases accountability and aids financial markets by disclosing criteria, assumptions and trade-offs.
- Annual Borrowing Plan:
  - Sets in detail how the government plans to implement its strategy in the year ahead, including timing via an issuance calendar (firm or indicative).
  - May include information on liability management operations (buybacks, debt exchanges).
  - Valuable for informing market of supply of instruments, potential maturities and timing.
- Issuance Calendar:
  - Provides granular details on forthcoming supply; typically monthly or quarterly.
  - Details the bond or bill to be sold on a specific date, and an expected amount to be sold (or a range).

### Investor presentations, statistical bulletins and annual reports
- Investor presentations:
  - Cornerstone of IR campaigns; designed to “tell a story” about the country.
  - Bring together data, statistics, forecasts, debt management and funding program information.
  - Should be updated at least annually and made available on the issuer’s website; frequent issuers may update semi-annually or quarterly.
- Statistical bulletin:
  - Relatively short (ideally no more than four pages) and produced on a quarterly basis.
  - Should provide detailed data on the central (and ideally public) debt stock, breakdowns by debt type and currency, a redemption profile, and key cost and risk indicators (average maturity, average cost of debt).
  - Ideally incorporates a minimum of two time periods for comparison and makes underlying data available in time series format on the DMO’s website.
- Annual report:
  - Backward-looking document summarizing DMO activities and evaluating whether borrowing was consistent with the strategy, explaining any divergence.

### Operational documents and legal/regulatory transparency
- Publish key operational documents relevant to how the primary and secondary markets function.
- If another infrastructure provider publishes operating manuals or guidelines, the DMO should ensure investors can access them (republish with permission or link to them).
- IR staff should include brief outlines on structural issues (issuance mechanisms, custody, clearing, payments, taxation and settlement) in published materials to build investor trust.
- Broader legal and regulatory information should be included or referenced by name in core publications and on the website to allow investors and intermediaries to access underlying laws and regulations quickly.

### Self-assessment and IIF evaluation of IR practices
- IR strategy should be subject to periodic evaluation; benchmark IR activities against performance criteria (examples: number of new investors participating in offerings, number of new investors met, number of requests for data and information).
- Periodic investor surveys requesting feedback on IR strategy and marketing initiatives can be useful.
- The IIF undertakes a regular evaluation of sovereign IR and data dissemination practices:
  - A yearly assessment is undertaken, according to 20 criteria for IR (see Annex II) and 23 for data dissemination.
  - The IIF has developed an index framework with a weighting system reflecting relative importance of different criteria from an investor perspective.
  - A country’s performance is measured against the index, with summation of investor relations and data dissemination practices scores on a prioritized basis.
  - The IIF provides updates to its assessments and reports innovations in real time through its website.

### The role of IR in periods of distress
- IR can offer particular benefits during times of distress by fostering relationships with investors who better understand policy reaction functions and may be less likely to make knee-jerk investment decisions.
- IR can make investors more “sticky” and help manage the risk or slow the flow of capital outflows in crises, potentially reducing volatility of funding costs and helping maintain market access.
- Limitation: benefits may not hold during particularly difficult circumstances or major crises, especially those triggering a major credit rating downgrade from investment to sub-investment grade (which might trigger investors to automatically re-allocate away from the country due to portfolio investment restrictions).
- IR is important for re-establishing market access after loss of funding and can play a critical role during debt restructurings by enabling creditors to evaluate impacts and facilitating good faith negotiations on a timely basis.

*Source: wpiea2020204-print-pdf - Box 2. Key Components of an Effective Debt Management Website*

### Box 3. IR as a Crisis Response – Indonesia and Covid-19

### Box 3. IR as a Crisis Response – Indonesia and Covid-19

### Crisis-period outreach and modalities
- Indonesia increased its IR outreach in response to the Covid-19 pandemic, proactively engaging with investors and CRAs through conference calls and videoconferencing applications.
- Conference calls were led by senior public sector officials, including the Governor of the Central Bank, as well as the Minister of Finance or Vice Minister of Finance.
- Frequency of investor engagements during the crisis:
  - Conducted twice weekly during periods of high financial market volatility.
  - Thereafter conducted every two weeks as market turmoil reduced.
- Example outreach volume:
  - During the period mid-March 2020 to end-July 2020, Indonesia’s Investor Relations Unit (IRU) conducted 17 investor conference calls.
  - Participant numbers on those calls ranged from 92−391 participants from Asia, Europe, and the United States.
  - Prior to the pandemic, calls were conducted quarterly with 20-50 participants.

### Objectives and regular IR practices of Indonesia’s IRU
- Institutional arrangement:
  - IRU formed by agreement between the Coordinating Ministry for Economy Affairs, the Ministry of Finance, and Bank Indonesia, enabling support from various government institutions to prepare materials and respond comprehensively and promptly.
  - The IRU is not situated in the same department as public debt managers but coordinates closely with the Ministry of Finance.
- IRU objectives:
  - To disseminate the latest economic and financial statistics through regular emails on a subscription basis and through the IRU website; registered subscribers also receive invitations to conference calls and investor presentations.
  - To establish direct contact between IRU staff and market participants to address concerns and questions regarding recent economic development and policies.
  - To maintain a website dedicated to providing current macroeconomic statistics and policy information related to fiscal, monetary and debt management policies.
- Publication and content practices:
  - The IRU publishes its investor presentation (“Presentation Book”) on its website on a monthly basis.
  - The Presentation Book covers: (i) institutional and governance issues; (ii) economic factors; (iii) external factors; (iv) fiscal performance and flexibility; (v) monetary and financial factors; and (vi) infrastructure development.
  - Since June 2020, an additional chapter has been added to update on the authorities’ commitment to sustainability and climate change mitigation.
- Regular investor calls and accessibility:
  - Investor conference calls are organized on a quarterly basis, usually held in February, May, August and November (the same month as the publication of quarterly GDP growth data).
  - Additional conference calls are arranged as necessary to ensure continuous open dialogue and to disseminate Indonesian market updates.
  - Speakers are senior officials from Bank Indonesia and the Ministry of Finance (Fiscal Policy Office and Directorate General of Budget Financing and Risk Management).
  - Calls cover recent economic developments and policy updates (both monetary and fiscal), with a playback recording available online.

### Outcomes and perceived effects
- The proactive IR approach helped reduce information asymmetries by providing transparent and comprehensive explanations from the authorities to investors.
- The authorities note these proactive engagements may have indirectly played an important role in easing capital outflow pressures, thereby reducing pressure on the domestic exchange rate during the crisis.

### Relevant considerations from the broader conclusion on IR implementation
- Implementing an IRP can be challenging but can improve the government’s ability to borrow cost-effectively and access capital markets in times of crisis.
- Key implementation challenges and responses:
  - Broad government commitment and cooperation are difficult but necessary; ministerial (or higher) support and an institutionalized culture of transparency facilitate cooperation.
  - Achieving cooperation can be gradual, e.g., improving the collation of information on SOE debt and developing a path towards improved transparency.
  - IR is not costless: it requires financial resources, human capital, IT infrastructure and management time, increasing the budget for debt management and necessitating ongoing training and capacity development.
  - IR can be cost-effective if it allows the government to borrow more cheaply or with lower financing risks over the long term, but the timing and certainty of costs and benefits require appropriate explanation and analysis for IRP proposals.
  - Progress may be slow; gaining traction with investors may take a year or two. Debt management offices must recognize IR as a long-term commitment, with IR activities becoming a core, structured function integral to policy development through feedback mechanisms.

*Source: Box 3. IR as a Crisis Response – Indonesia and Covid-19, wpiea2020204-print-pdf*

### 3.  Central bank and government agency websites available in English

### 3.  Central bank and government agency websites available in English

### Website language and reciprocal linking requirements
- An IRO website in English is sufficient to meet this criterion. If there is not an IRO website, both the Central Bank and Ministry of Finance (or Treasury) websites must be in English.
- The statistics agency website and other additional government agency websites ideally will be published in English, but are not required to meet this criterion.
- Key websites include the IRO, Central Bank, and Ministry of Finance (or Treasury) websites.
- Reciprocal links to the IRO, Central Bank, and Ministry of Finance websites are required; the criterion is not met if one agency contains links but others do not reciprocate.
- Additional links to government agencies such as the debt management agency or national statistics office are recommended but not required.

### Investor registration and subscription
- Investors can register on the IRO, Central Bank, or Ministry of Finance (or Treasury) website to subscribe and receive information such as data releases, policy information, or notices about roadshows or conference calls via email.

### Data dissemination standards and effective transparency
- Country must subscribe to the IMF’s SDDS.
- The SDDS identifies four dimensions of data dissemination: (1) data coverage, periodicity, and timeliness; (2) access by the public; (3) integrity of the disseminated data; and (4) quality of the disseminated data.
- For each dimension, the SDDS prescribes two to four monitorable elements—good practices that can be observed, or monitored, by the users of statistics.
- Authorities must disseminate key data related to central government operations, central government debt, and external debt in a timely manner.
- Effectiveness of dissemination is associated with performance in the IIF data transparency index and is evaluated on a 3-point scale, with maximum points awarded to countries with the highest levels of data transparency.

### Presentation, policy information, and structural data
- Data must be presented in a format easily manipulated in Microsoft Excel; some data should be available in time series.
- Policy information must be provided on one or more websites in a clear, succinct format that delivers central points; countries must provide data and policy information on one or more websites in English.
- Historic policy information should be locatable per the IMF’s SDDS.
- Forward-looking policy information should include comprehensive economic outlook reports identifying monetary and fiscal policy objectives and assumptions of relevant economic variables; presentation of the country’s debt management strategy is encouraged but not required.
- Structural information (e.g., legal, regulatory, governance frameworks) supported by the data must be available as appropriate.

### Investor relations (IR) activities and standards (criteria 12–20)
- Active investor contact list:
  - Authorities must maintain a list of investors; ideally update and maintain it at least twice annually.
  - Officials from one or more government agencies should distribute policy and macroeconomic information to the investor list via email at least every two weeks.
- Web-based communication with investors:
  - Authorities must provide a general email box, specific email address, or HTML-based form on the IRO, Central Bank, or Ministry of Finance (or Treasury) websites.
  - Responses should be received within 36 hours to fulfill this criterion.
- Bilateral meetings with investors:
  - Authorities conduct bilateral meetings with investors on a regular basis, domestically or abroad.
- Non-deal roadshow(s):
  - Country authorities must conduct one or more non-deal roadshows annually.
- Investor conference call(s):
  - Authorities conduct public investor conference calls at least every quarter; investors should be invited via email and/or website announcement.
  - Calls should be led by the IRO head and senior department heads, with senior policymakers involved as needed.
  - “Closed” calls where date/time are not published do not qualify.
- Archives of investor presentations and conference call materials:
  - Official websites must contain an archive of materials presented to investors (replay, presentations, transcripts).
- Investor feedback reflected in policy decisions:
  - Senior policymakers should have taken market input into account; assessment is based on survey responses by country authorities.
- Senior policymakers’ participation in IR activities:
  - Senior policymakers (Minister, Central Bank Governor, or deputies) must be involved in at least two of: (1) conference calls, (2) bilateral meetings, (3) non-deal roadshows.
- Regular self-assessment of IR activities:
  - Authorities must conduct annual self-assessments of IR efforts, which may be via a survey distributed to the investor base or a representative sample.

### ANNEX III — Case studies: Ireland, Portugal, and Cyprus (lessons in restoring market access)

Ireland
- Lost market access and entered a three-year EU-IMF supported program in 2010 during the European sovereign debt crisis (2010–14).
- NTMA actions during market exit and re-entry:
  - Analyzed potential investor base and identified investors with greater risk appetite (e.g., ‘credit’ and emerging market investors) for initial market return.
  - Maintained strong relationships with PDs to leverage their market knowledge, secondary trading role, and investor connections.
  - Maintained presence in the Euro Commercial Paper (ECP) market to raise short-term money and stay in contact with PDs and market participants.
  - Undertook first non-deal roadshows in May and June 2011 despite some PD reservations; these roadshows helped find new investors.
  - After that point, covered each main investor center in North America and Europe twice annually and visited Asia and the Middle East at least once.
  - Communicated systematically via non-deal roadshows, reverse roadshows, conference calls, and email updates.
  - Emphasized presenting a consistent and realistic message outlining its path to recovery, building on program track record, banking reforms, and fiscal consolidation.
- Post-reaccession, NTMA continued regular visits to the U.K., U.S., Asia, and continental Europe.

Portugal
- Requested economic and financial assistance in April 2011 with a 3-year program including a financing package of €78 billion, covering borrowing needs until September 2013.
- Exit from program scheduled for Q2 2014; prepared to regain full market access.
- Investor base changed due to change in credit rating; traditional investors (pension funds, insurance companies) exited; new investors including US hedge funds became active.
- Marketing actions targeted traditional European investors and those in the UK and US who could assess program success.
- Outcomes included a widened investor base and successful transactions:
  - 10-year USD issue for USD 4.5 billion (the largest USD issue by a European sovereign at the 10-year maturity point).
  - New syndicated issuance at longer maturities including a new 15-year benchmark (in September 2014).
  - New dual tranche syndicated deal for new 10- and 30-year bonds (in January 2015), the first 30-year issuance since 2006.
- Number of PDs increased since the crisis began; authorities changed PD appraisal terms with stronger emphasis on their role in broadening the investor base.

Cyprus
- Lost market access in early June 2011 and re-accessed markets with a syndicated issue in June 2014.
- Before the crisis, IR activities were limited; the crisis prompted a proactive, objective-based IR strategy with continuous investor outreach and regular publication of data and information.
- Actions taken:
  - Conducted non-deal roadshows broadened in geographical coverage and investor type.
  - Participated in conferences and encouraged potential investors to reach out; responded quickly and efficiently.
  - Educated investors about actual economic situation, promoted transparency and credibility by providing regular data and delivering results under the economic adjustment program.
  - Focused on restoring confidence by fulfilling program commitments and adopting sustainable economic policies safeguarding long-term fiscal sustainability.
- Credit rating considerations:
  - Low credit rating (non-investment grade) hindered some investors; trend in improvement and outlook assigned by CRAs were most important.
  - A negative outlook on a non-investment grade rating can be a major obstacle to restoring market access.
- CRA engagement and debt management:
  - DMO formally appointed (solicited) all four CRAs utilized by the European Central Bank and maintains informal relations with other agencies.
  - DMO acts as liaison between Government and CRAs, facilitating swift flow of information.
  - Adopted a clear, reliable, transparent medium-term debt management strategy with effective cost and risk targets, including a mandatory rule for maintaining a cash buffer sufficient to meet Cyprus’s financing needs for at least the next 12 months on a rolling basis.
- IR communication and outreach:
  - Increased visibility of government officials and enhanced contact with international stakeholders via non-deal roadshows, conference calls, and other investor events.
  - Produced and distributed information relevant for bond investors and other creditors via the DMO website and regular emails to a contact list.
  - DMO proactively assists investors with additional information beyond regular publications and facilitates contact with other government officials.
  - Appointment of a bank group by the DMO improved market communication and increased visibility of IR efforts.
- Forward-looking IR policy:
  - Geared towards developing the investor pool by increasing outreach geographically and by investor type.
  - Feedback from interactions enables the DMO to develop an issuance strategy that accounts for investor needs and market developments.

*Source: 3.  Central bank and government agency websites available in English (wpiea2020204-print-pdf)*

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_Source: https://www.imf.org/-/media/files/publications/wp/2020/english/wpiea2020204-print-pdf.pdf_