Vietnam: Methods of issuance of municipal bonds

According to Circular No. 100/2015/TT-BTC of the Ministry of Finance of Vietnam, methods of issuance of municipal bonds include:

1. Bidding:

- The bidding for municipal bonds is organized at the Stock Exchange where the bidding for Government bonds is organized.

- The principles and methods of bidding, participants in bidding, procedures for bidding organization, and method of determining bidding results and bond settlement method shall comply with regulations on issuance of Government bonds through bidding at the Stock Exchange.

2. Underwriting:

- The Provincial-level People’s Committee issues bonds through underwriting to a main underwriter or an underwriter syndicate that satisfies all of the conditions specified herein.

- Eligibility requirements for a main underwriter or participant in the underwriter syndicate, rights and benefits, obligations, procedures for selecting the main underwriter and members of the underwriter syndicate, procedures for negotiation and bond settlement process shall comply with regulations provided in Appendix 2 enclosed herewith.

3. Brokerage:

- The Provincial-level People’s Committee of its authorized agency shall select qualified organizations to act as issuing agents and agents for payment of bond principal and interest.

- Procedures for selecting issuing agent and payment agent, and procedures for issuance of municipal bonds through agents shall comply with the procedures for issuance of Government bonds through agents.

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