Regulations on exercising the rights of individual corporate bondholders in Vietnam

Regulations on exercising the rights of individual corporate bondholders in Vietnam

Regulations on exercising the rights of individual corporate bond holders in Vietnam are as follows:

(1) Cases of exercising rights to individual corporate bonds in Vietnam include:

- Get opinions of bondholders;

- Payment of bond principal and interest;

- Converting convertible bonds;

- Bond swaps;

- Repurchase bonds before maturity;

- Other rights as provided for by law.

(2) In case the issuer pays bond principal and interest to bondholders with other assets as prescribed in Article 1 of Decree 08/2023/ND-CP:

- For assets used for payment that are securities registered at the Vietnam Securities Depository and Clearing Corporation (VSDC for short), the transfer of securities ownership shall comply with the provisions of Circular 119/2020/TT-BTC

- For assets used for payment other than securities registered at VSDC, the payment shall be made at the issuing enterprise.

The issuer must take full responsibility for the payment to bondholders in accordance with the law.

(3) In case the issuer changes the terms and conditions of the bond or pays the bond principal and interest to bondholders with other assets as prescribed in Articles 1 and 2 of the Decree 08/2023/ND-CP resulting in the payment of bond principal and interest in cash cannot be made to all bondholders according to the information on bond terms and conditions previously registered with VSDC, the issuer will make that payment by itself to all bondholders.

The issuer must take full responsibility for the payment to bondholders in accordance with the law.

(4) The issuer must notify VSDC of the use of other assets to pay bond principals and interests to bondholders and the change in terms and conditions of bonds according to items (2) and (3) above at least 05 working days before the date of payment of bond principal and interest, and must take full responsibility in case of failure to notify or late notification to VSDC.

(5) The exercise of the rights of individual corporate bond holders registered at VSDC shall comply with the provisions of Circular 30/2023/TT-BTC, Articles 8, 9, and 10 of Circular 119/2020/TT-BTC, and VSDC's Regulation on registration, depository, and payment of individual corporate bonds.

Circular 30/2023/TT-BTC takes effect from July 1, 2023.

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