Decree No. 153/2020/ND-CP trading of privately placed corporate bonds in domestic market
Cooperate bonds shall be traded among professional investors only
The Decree No. 153/2020/ND-CP on provisions on private offering and trading of corporate bonds in the domestic market and offering corporate bonds to the international market is issued by the Government on December 31, 2020.
Accordingly, the pair value of bonds offered in the domestic market is VND 100,000 or one of its multiples. Bond-issuing corporations shall prepare a bond issuance plan for submission to a competent authority for approval and acceptance which will serve as a basis for information disclosure.
Besides, conditions for a corporation to offer inconvertible bonds or bonds unaccompanied with warrants to the international market include: Being a joint-stock company or limited liability company established and operating in accordance with the law of Vietnam; Satisfying the requirements on capital adequacy ratio and prudential ratio in operation as prescribed; Complying with regulations on management of foreign borrowing and foreign debt payment by corporation not guaranteed by the Government and the law on foreign exchange management, etc.
Corporation bonds offered for private offering shall be traded among professional securities investors only, except for cases of implementing the judgment or decision of the Court that has taken legal effect or the arbitral decision or inherit according to the provisions of law.
This Decree takes effect on January 01, 2021.
For further details of the Decree 153/2020/ND-CP, Click here
translation of the Official Gazette of the Vietnam News Agency
THE SOCIALIST REPUBLIC OF VIETNAM
Hanoi, December 31, 2020
On provisions on private offering and trading of corporate bonds in the domestic market and offering corporate bonds to the international market
Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;
Pursuant to the November 26, 2019 Securities Law;
Pursuant to the June 17, 2020 Law on Enterprises;
At the proposal of the Minister of Finance;
The Government hereby promulgates the Decree on provisions on private offering and trading of corporate bonds in the domestic market and offering corporate bonds to the international market.
Article 1. Scope of regulation
1. This Decree prescribes the private offering and trading of corporate bonds in the territory of the Socialist Republic of Vietnam and offering corporate bonds to the international market.
2. This Decree shall not prescribe the public offering and trading of corporate bonds in domestic market as prescribed in the Securities Law No. 54/2019/QH14.
Article 2. Subjects of application
1. Bond-issuing corporations being joint stock companies or limited liability companies established and operating in accordance with Vietnam’s law.
2. Agencies, organizations, individuals involved in the offering and trading of corporate bonds.
Article 3. Application of relevant laws
1. Enterprises operating in the fields of securities, banking or lottery shall comply with not only this Decree but also relevant specialized laws. In case of any difference between the provisions of a specialized law and those of this Decree, the former shall prevail.
2. PPP project corporations offering bonds, apart from complying with this Decree, must comply with the provisions of the law on investment under the public-private partnership mode. In case of any difference between the provisions of the law on public-private partnership investment and the provisions of this Decree, the provisions of the public-private partnership investment law shall prevail.
3. For corporations offering bonds to the international market shall comply with not only this Decree but also the Decree No. 219/2013/ND-CP dated December 26, 2013 of the Government, on management of the borrowing of foreign loans and payment of foreign debts of enterprises not entitled to government guarantee, guiding documents, and revising or replacing documents (if any). In case of any difference between the regulations on management of the borrowing of foreign loans and payment of foreign debts and those of this Decree, the former shall prevail.