Application for State Bank of Vietnam’s approval of plan for public offering of bonds

Clause 7 Article 1 of Circular No. 33/2019/TT-NHNN of the State Bank of Vietnam (SBV) amends Article 22 of Circular No. 34/2013/TT-NHNN on application for SBV’s approval of plan for public offering of bonds. Specifically, the application for approval of the plan for public offering of bonds by a credit institution which must bear the signature of the legal representative of that credit institution and specify the assessment of its fulfillment of conditions for public offering of bonds, including financial performance (after-tax profit) in the year preceding the year of issuance, paid-in charter capital at the date of issuance, profits or losses accumulated until the year of issuance, accounts payable more than one year overdue, the funding plan and use of funds in the year of issuance.

The plan for public offering of bonds approved by a competent authority of the credit institution shall include, inter alia, the following contents:

- Total face value of bonds issued;

- Name, term and interest rate of the bond and eligible buyers;

- Location, form and method of bond issuance;

- The plan for public offering of convertible bonds or warrant-linked bonds must also include the contents specified in Clause 1 Article 24 of Circular No. 34/2013/TT-NHNN.

Besides, the plan for use of funds obtained from the public offering of bonds and debt repayment shall be approved by a competent authority of the credit institution. The competent authority of the credit institution that gives approval of the plan for use of funds obtained from the public offering of bonds and debt repayment is also the one giving approval of the plan for public offering of bonds.

The written undertaking by the credit institution to perform duties towards bond buyers regarding issuance conditions, payment and assurance of rights and legitimate interests of bond buyers as well as other conditions.

Decisions made by the competent authority of the credit institution giving approval of the plan for public offering of bonds and the plan for use of funds obtained from the public offering of bonds and debt repayment.

View other provisions at Circular No. 33/2019/TT-NHNN of the State Bank of Vietnam, effective from February 19, 2020.

Thu Ba

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