Vietnam: Organizations making public offering of corporate bonds shall disclose information about the progress of use of funds every 06 months

Specifically, according to Article 19 of the Circular No. 96/2020/TT-BTC of the Ministry of Finance of Vietnam, information disclosure by organizations making public offering of corporate bonds are specified as follows:

1. The organization making public offering of corporate bonds shall disclose information about its public offering of corporate bonds in accordance with regulations on public offering of corporate bonds.

2. The organization making public offering of corporate bonds shall disclose the following information:

- It shall periodically disclose information about its annual financial statements audited by an accredited audit organization, annual report and resolution of the annual the General Meeting of Shareholders (GMS) (if the issuer is a joint-stock company) from the end of the public offering of bonds until the completion of payment for bonds as prescribed in Clauses 1, 2 and 3 Article 10 of this Circular;

- In case funds are raised for executing investment projects, the issuer shall periodically disclose information about the audited report on use of funds raised from the offering/report on fund use progress from the end of the public offering of bonds until the completion of payment for bonds or disbursement of raised funds in full, whichever comes first. To be specific:

+ The organization making public offering of bonds shall provide detailed notes on the use of funds raised from the offering in its annual financial statements accredited by auditors or concurrently disclose the report on use of funds raised from the offering accredited by auditors and its annual financial statements audited and reported at the annual GMS or the annual meeting of the Board of Members;

+ Every 06 months, the issuer must disclose information about the progress of use of funds raised from the offering within 05 working days from the end of the reporting period.

- The organization making public offering of corporate bonds shall disclose information about the payment of bond principal and interest according to the form prescribed in Appendix VI enclosed herewith within 30 days from the end of 06 first months of the year and the end of the calendar year;

- It shall disclose information on ad hoc basis upon the occurrence of any of the events prescribed in Clause 1 Article 11 of this Circular and  must specify the event, reasons and remedial solutions (if any);

- In case of issuance of non-mandatory convertible bonds, the issuer must send notification to each bondholder and disclose information about time, ratio, prices, and location of conversion registration within 01 month before the date of bond conversion;

- Disclosure of information on request shall be made according to Article 12 of this Circular.

View more details at the Circular No. 96/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

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