The COVID-19 pandemic has underscored the importance of preserving investor confidence and maintaining communication, which are important investor relations functions. A new working paper, Sovereign Investor Relations: From Principles to Practice, attempts to define sovereign investor relations (IR) and place it in the context of modern debt management theory. It highlights the role that improvements in IR and debt transparency can play in improving the cost-risk tradeoff in debt management, supporting market access and acting as a first line of defense in times of crisis. The paper sets out a policy framework and institutional arrangements for effective IR, as well as discussing the various practices, publications and strategies that underpin an IR program.
This webinar invited the authors to discuss highlights on their working paper. Discussants commented on the paper from a practical perspective given their experience supporting many governments to strengthen IR. Discussants also introduced the angle of IR around Environment, Social and Governance (ESG) and sustainable financing based on a recent paper on ESG investment and extensive policy experience.