Revising Decree 153 to enhance transparency in corporate bond issuance

VCN - At a press conference to introduce Decree 65/2022/ND-CP amending and supplementing a number of articles of 153/2020/ND-CP stipulating the offering and trading of privately placed corporate bonds in the domestic market and international market organized by the Ministry of Finance on the afternoon of September 19, a representative of the Department of Banking and Financial Institutions (Ministry of Finance) mentioned new contents and points in the new Decree.
Complying with the regulations relating to corporate bond issuance Complying with the regulations relating to corporate bond issuance
The Government's clear message: Protect businesses and investors The Government's clear message: Protect businesses and investors
Bond market develops stably, effectively mobilizing capital for the State budget Bond market develops stably, effectively mobilizing capital for the State budget
The press conference
The press conference

At the press conference, Mr. Nguyen Hoang Duong, Deputy Director of Department of Banking and Financial Institutions, said that the corporate bond market has been developing in accordance with policies of the Party, National Assembly and Government and becoming an important medium and long-term capital mobilization channel, contributing to reducing dependence on bank credit. Since 2019, the volume of corporate bond issuance has soared, to about VND467 trillion/year on average.

Despite the positive results in terms of capital mobilization scale, the rapid growth of the market has also created new risks, affecting its development.

The Government issued Decree 65/2022/ND-CP amending and supplementing a number of articles of Decree 153/2020/ND-CP on the principle of complying with conditions of bonds issuance specified in the Law on Securities, the Law on Enterprises and supplementing regulations according to the Government's authority to continue developing a transparent and sustainable corporate bond market, protecting the interests of issuers and investors and overcome inadequacies in the market.

In addition, the Decree also strengthens management and supervision, including inter-connected supervision between the financial market sector, the banking credit sector and other sectors of the economy.

Responding to a reporter's question about the new points of Decree 65 contributing to enhancing the transparency of the corporate bond market, Mr. Nguyen Hoang Duong said that regarding the issuance conditions, Decree 65 does not add new regulations but increases transparency by requiring credit rating results in the private placement dossier under the roadmap of public offering in accordance with the current law.

Accordingly, Decree 65 stipulates that the conditions for bond issuance must comply with the provisions of the Law on Securities and the Law on Enterprises. The decree adds regulations on bond offering documents including credit rating results according to cases and roadmap as prescribed for bond offering to the public (from January 1, 2023); the offer documents must contain a contract signed with a representative of the bondholder in the offering to a professional securities investor who is an individual, and a commercial bank's confirmation of the opening of an account to receive money for bond purchase.

Regarding the liability requirements of the issuer, Decree 65 additionally stipulates that the enterprise must repurchase before the due date when it violates the issuance plan (including the capital use plan) or violates the law; before and after the issuance, there must be a disclosure of information on solvency, an audit report on the financial situation and the use of capital for the issuance purpose. Furthermore, the decree adds a provision that security assets of bonds must be valued and registered for security.

Mr. Duong added that the new decree also stipulates that the special content of the corporate bond information page at the Stock Exchange will add the publication of some financial indicators of the issuer, information on businesses that fail to fulfill their obligations of paying bond principal and interest and improperly use bond capital to reveal information about issuers to the public.

In order to improve the professionalism of investors, the new decree adds regulations to increase the professionalism of individual investors when buying privately placed corporate bonds, minimizing individual investors committing fraud to buy corporate bonds.

Specifically, the identification of professional securities investors by a securities portfolio must ensure that the portfolio must be valued at least VND2 billion within 180 days with the investor's assets, not including loans.

When buying bonds, investors must read, understand and sign a confirmation that they have knowledge of bonds and laws and accept risks on bonds (both in the primary and secondary market). The organization providing information and the organization certifying the status of a professional securities investor shall both sign this confirmation to confirm that they have provided sufficient information and documents to the investors.

Along with that, investors are not allowed to sell or contribute capital to invest in bonds with investors who are not professional securities investors.

Mr. Nguyen Hoang Duong also said that, in order to be transparent in private corporate bond offerings and transactions, the new decree also adds regulations to enhance transparency and law compliance of service providers.

New regulations about corporate bond issuance New regulations about corporate bond issuance

Privately placed corporate bonds can no longer be sold within their first year of issuance according to ...

According to Mr. Duong, Decree 65 will continue to support enterprises to mobilize medium and long-term capital. Enterprises must meet conditions on documents to increase the authentication and those who have good financial situation and good law compliance and disclose full information will have a good chance to mobilize capital.

By Hoai Anh/ Huyen Trang

Related News

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Further improvement needed in work permit issuance

Further improvement needed in work permit issuance

VCN - Further improving procedures for granting work permits and business licenses to enterprises will make Vietnam more attractive to foreign investors.
Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

VCN - The issuance of Circular 68/2024/TT-BTC by the Ministry of Finance is considered a solution to remove a major bottleneck in upgrading the stock market related to the abolition of the regulation on pre-trading margin requirement for foreign institutional investors.

Latest News

M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Read More

Your care

Latest Most read
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Mobile Version