Vietnam: Supplementing terms of municipal bonds

Anh Tu

09:29, 24/08/2015

This is a content specified in Circular No. 100/2015/TT-BTC of the Ministry of Finance of Vietnam providing guidance on the issuance of municipal bonds in the domestic market.

According to Circular No. 100/2015/TT-BTC of the Ministry of Finance of Vietnam, in addition to terms and conditions of bonds prescribed in Article 6 of Decree No. 01/2011/ND-CP of Vietnam’s Government, an issuer of municipal bonds must comply with the following provisions:

1. Terms of bond

Municipal bonds are issued with a term of one year or above. Each Provincial-level People’s Committee shall decide specific terms of municipal bonds in conformity with demand for capital and market conditions.

2. Face value of the bond

The face value per municipal bond shall be one hundred thousand Vietnamese dongs (VND 100,000). Other face values of the municipal bond shall be the multiples of one hundred thousand Vietnamese dongs (VND 100,000).

3. Issuance quantity

The quantity of each issue is decided by the issuer according to the local demand for capital and the capacity for capital mobilization in the market but must not exceed the issuance limit granted by competent authorities as specified in this Circular.

4. Interest rate of bonds issued

The interest rate of municipal bonds issued is decided by the issuer but must not exceed the bracket of interest rate imposed by the Ministry of Finance as regulated in Article 9 herein.

More details can be found in Circular No. 100/2015/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from August 01, 2015.

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