Enterprises eligible for extension of the bond term up to 2 years in Vietnam

Le Truong Quoc Dat

09:13, 06/03/2023

On March 5, 2023, the Government of Vietnam issued Decree 08/2023/ND-CP on amending and annulling the effect of a number of articles in the Decrees regulating the private placement of corporate bonds for sale and transactions in the domestic market and the offering for sale of corporate bonds in the international market.

According to Article 2 of Vietnam's Decree 08/2023/ND-CP amending point b, clause 3, Article 3 of Decree 65/2022/ND-CP on the change of conditions and terms of bonds, the following principles must be ensured:

- Complying with the provisions of Clause 3, Article 1 of Vietnam's Decree 65/2022/ND-CP.

- In case of extension of the bond's term, the maximum period shall not exceed 02 years compared with the term in the bond issuance plan announced to investors.

- For bondholders who do not agree to change the terms and conditions of bonds, the issuing enterprise is responsible for negotiating to ensure the interests of investors.

In case a bondholder does not accept the negotiation plan, the enterprise must fulfill all obligations towards the bondholder according to the bond issuance plan announced to investors (including the case where the change in terms and conditions of the bond has been approved by bondholders representing 65% or more of the total number of bonds).

(Previously at Point b, Clause 3, Article 3 of Vietnam's Decree 65/2022/ND-CP, enterprises are not allowed to change the term of issued bonds.)

Vietnam's Decree 08/2023/ND-CP takes effect from March 5, 2023.

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