What are plans for issuance of bonds of enterprises in Vietnam?

What are plans for issuance of bonds of enterprises in Vietnam? - image from internet

Pursuant to Clause 1 Article 14 of the Decree 163/2018/ND-CP on issuance of corporate bonds, which takes effect from 01/02/2019, stipulating plans for issuance of bonds of enterprises in Vietnam:

Bond issuing enterprises shall formulate issuance plans for submission to competent authorities to seek their approval or consent according to the provisions of Clause 2 of this Article and to use them as a basis for information disclosure. The plan for issuance of bonds shall contain the following main information:

a) Information about the issuing enterprise (e.g. business name, type of business, office, business registration certificate or business registration certificate or license having equivalent value as prescribed by law);

b) Purposes of issuance of bonds;

c) Documents and legal documents proving that enterprises meet each conditions for issuing bonds as stipulated in Article 10 and Article 11 of this Decree;

d) Terms and conditions of bonds to be issued; venue of issuance; volume of bonds in each issuance and proposed time of each issuance;

dd) Terms and conditions regarding conversion of bonds into shares in case of issuance of convertible bonds;

e) Terms and conditions regarding the exercise of stock call options in case of issuing warrant-linked bonds;

g) Terms and conditions on the redemption of premature bonds and bond swaps (if any);

h) Certain financial indices of the issuing enterprise in 03 consecutive years proceeding the issuance year (if any) and any change made after issuance, including:

- Equity;

- Ratio of liabilities to equity;

- After-tax profit;

- Return on equity (ROE);

i) Current conditions of payment of both principal and interest for a period of 03 consecutive years prior to the issuance of bonds (if any);

k) Audit opinions on a financial statement;

l) Bond issuing methods;

m) Modes of payment of bond principal and interest;

n) Plan to use funds generated from issuance of bonds

o) Fund allocation plan and mode of payment of bond principal and interest;

p) Commitments to disclosing information of the issuing enterprise;

q) Other commitments to bondholders (if any);

r) Terms and conditions regarding registration and depositing;

s) Terms and conditions regarding bond transactions under the provisions of clause 8 of Article 6 herein

t) Rights and responsibilities of bond purchasers;

u) Rights and responsibilities of the issuing enterprise;

v) Responsibilities and obligations of organizations and individuals providing services related to bond issuance.

Best regards!