The city is set to fall short of its revenue target for this year by 15 percent. Funds raised from issuing bonds will be used for development works, officials say.

Half of the issuance value will have a maturity of 30 years, and the rest will comprise 20 and 15 year bonds. The bonds will have coupon rates of 3.47-4.05 percent and will be guaranteed by the city.

"The bond issuance is a necessary solution to mobilize capital to resolve the difficulties in manufacturing. They will help boost public investment disbursement and fund major projects," HCMC Deputy Chairman Le Thanh Liem said at a meeting Tuesday.

Liem said that previous bond issuances in the 2003-2007 and 2012-2018 periods attracted interest from commercial banks and insurance companies.

The city is waiting for final approval from the Ministry of Finance and is set to issue the bonds next month.

HCMC authorities have forecast a gross regional domestic product (GRDP) growth of 1.3 percent this year, down from 8.3 percent last year owing to pandemic impacts.