Vietnam: Conditions for offering of bonds in international market

According to Article 25 of the Decree No. 153/2020/NĐ-CP of the Vietnam’s Government, conditions for offering of bonds in international market are as follows:

- With regard to non-convertible bonds without warrant:

+ The issuer must be a joint-stock company or limited liability company duly established and operating in accordance with the law of Vietnam;

+ The plan for issuance of bonds in the international market must have been approved and accepted by a competent authority as prescribed in Article 28 hereof;

+ It has maintained adequacy ratios and prudential ratios in operations in accordance with regulations of specialized laws;

+ It complies with regulations on management of enterprises’ borrowing and repayment of foreign debts which are not guaranteed by the Government, and regulations on foreign exchange management;

+ It meets the offering conditions according to regulations adopted in the issuing market.

- With regard to convertible bonds or warrant-linked bonds:

+ The issuer must be a joint-stock company that meets the conditions laid down in Clause 1 of this Article;

+ The conversion of bonds into shares and execution of warrants must ensure the ratio of holding by foreign investors as prescribed by law;

+ There is an interval of at least 06 months between two offerings of convertible bonds or warrant-linked bonds.

More details at the Decree No. 153/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Le Thanh

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