On December 04, 2018, the Government of Vietnam issued Decree No. 163/2018/NĐ-CP, which specifies principles of issue and use of capital of corporate bonds.
According to Decree No. 163/2018/NĐ-CP of Vietnam’s Government, issue and use of capital of corporate bonds must comply with the following principles:
- Enterprises shall issue bonds according to the principles of lending, repayment and assumption of responsibilities for effectiveness of use of capital on their own and assurance of debt repayment capabilities.
- Enterprises shall issue bonds to implement investment programs and projects and serve the purpose of increasing operating capital amount or restructuring debts of their own. Purposes of issue of bonds must be specified in the plan for issue of bonds and must be informed to investors registering purchase of these bonds under the provisions of this Decree.
- Capital mobilized from the issue of bonds must be used for the purposes defined in the bond issue plan and in conformity with contents of the declaration of information provided for investors.
- As for issue of green bonds, in addition to compliance with provisions laid down above, capital sources derived from issue of bonds must be accounted for, managed separately and disbursed to environmental protection projects according to the issue plan approved by the competent authority.
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 |