This is a notable content specified in Decree No. 163/2018/NĐ-CP of Vietnam’s Government prescribing the issuance of corporate bonds, issued on December 04, 2018.
According to Decree No. 163/2018/NĐ-CP of Vietnam’s Government, bond forms include:
- Bonds shall be issued in a form of certificates, entries or electronic data;
- Bond-issuing enterprises shall decide specific forms of bonds in each issuance under regulations in force at destination markets.
Moreover, Decree No. 163/2018/NĐ-CP also stipulates nominal interest rates of bonds as follows:
- The nominal interest rate of a bond may be determined according to one of the following methods: fixed interest rate applied to the entire maturity; floating interest rate; fixed and floating interest rate;
- If the nominal interest rate is a floating interest rate, bond-issuing enterprises must specify benchmarks for determination of the nominal interest rate in the bond issuance plan and must inform bond purchasers of those benchmarks in use;
- Enterprises shall make their decision on the nominal interest rate of each issue of bonds where appropriate for financial conditions and debt repayment capabilities. The interest rate of bonds issued by credit institutions shall both comply with provisions of this Decree and conform to regulations on the interest rate quoted by the State Bank of Vietnam.
View more details at Decree No. 163/2018/NĐ-CP of Vietnam’s Government, effective from February 01, 2019.
-Thao Uyen-
Address: | 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City |
Phone: | (028) 7302 2286 |
E-mail: | info@lawnet.vn |