What are regulations on scheme for issuance of international bonds in Vietnam?

What are regulations on scheme for issuance of international bonds in Vietnam?

Pursuant to Article 30 of the Decree 95/2018/NĐ-CP stipulating scheme for issuance of international bonds in Vietnam as follows:

1. Based on the 05-year borrowing and repayment plan, the 03-year public debt management program, the annual budget estimate, the annual borrowing and repayment plan and the international financial market developments, the Ministry of Finance shall formulate the scheme for issuance of international bonds, and submit it to the Government for approval.

2. A scheme for issuance of international bonds is formulated in accordance with regulations in Clause 3 Article 28 of the Law on public debt management and includes the following contents:

a) The method for selection of an organization or a syndicate to take charge of managing the bond issuance, legal advisors and relevant agencies, and the plan for issuance of international bonds;

b) Estimated costs associated with the issue of international bonds.

What are regulations on approval for a scheme for issuance of international bonds in Vietnam?

Pursuant to Article 31 of the Decree 95/2018/NĐ-CP stipulating approval for a scheme for issuance of international bonds in Vietnam as follows:

1. Based on the scheme for issuance of international bonds, the Government shall promulgate a resolution on approval for the policy for issuance of international bonds with the following contents:

a) Purposes;

b) Quantity, currency and term of international bonds to be issued;

c) The market where bonds are issued;

d) Policy on tax on bondholders' income from bond principal and interest;

dd) Estimated costs associated with the issue of international bonds.

e) The method for selection of an organization or a syndicate to take charge of managing the bond issuance, legal advisors and relevant agencies;

g) Responsibility of the Ministry of Finance and relevant organizations and individuals.

2. Pursuant to the policy for issuance of international bonds approved by the Government, the Prime Minister shall make decision on each issue of international bonds with the following contents:

a) Quantity and term of bonds to be issued, and issuance method;

b) Planned interest rate;

c) Planned registration, depositing, listing and trading of bonds;

d) Issuance date.

What are included in the documentation of issuance of international bonds in Vietnam?

Pursuant to Article 32 of the Decree 95/2018/NĐ-CP stipulating the documentation of issuance of international bonds in Vietnam as follows:

1. A documentation of issuance of international bonds includes legal documents prepared by the Ministry of Finance in cooperation with domestic and foreign legal advisors and relevant agencies in accordance with the law of Vietnam and the law of issuing market.

2. A documentation of issuance of international bonds includes:

a) The prospectus;

b) Underwriting agreement;

c) Consultant agreements;

d) International bond purchase agreements;

dd) Agency agreements, including:

- Printing agency: the organization authorized to print bonds, prospectuses and relevant documents;

- Listing agency: the organization authorized to carry out procedures for listing of bonds of the issuer on appropriate stock markets in conformity with regulations applicable at the place where bonds are listed;

- Financial and settlement agency: the organization authorized to make payment of bond principal and interest on behalf of the issuer to investors, and manage the list of bond buyers in each issue;

- Transfer agency: the organization authorized to prepare reports on bondholders, cancel and issue certificates, and take actions against issues relating lost, damaged or stolen certificates;

- Trust agency: the organization appointed by bondholders to exercise their rights and comply with bond terms and conditions;

- Depository: the organization accepting depositing of international bonds, managing deposited bonds, and confirming the transfer and assignment of bonds on the market.

e) Written legal opinions;

g) Relevant documents.

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