Legal Counselling

Vietnam: Requirements for issuance of bonds to international markets

16:44, 07/12/2018

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, requirements for issuance of non-convertible bonds or bonds without warrants are as follows:

- In order to be eligible for issuing bonds, joint-stock companies or limited liability companies must be established and operated under Vietnamese legislation;

- Meet issuance requirements defined in regulations of the host market;

- Have the plan for issuance of bonds to international market approved and accepted by competent authorities under regulations of law;

- Meet regulations on forex management and provisions of laws on management of lending and repayment of overseas debts of issuing enterprises;

- Conform to financial safety ratios and prudential ratios in accordance with specialized laws.

Issuance of convertible bonds or warrant-linked bonds:

- The issuing enterprise must be a joint-stock company meeting issuance requirements of non-convertible bonds or bonds without warrants;

- Meet regulations on ratios of ownership of foreign investors as per laws;

- The issuances of convertible bonds must be at least six months apart.

View more details at Decree No. 163/2018/NĐ-CP of Vietnam’s Government, effective from February 01, 2019.

-Thao Uyen-

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