Hanoi (VNA) – The government has issued a decree amending, supplementing and canceling certain articles of decrees relating to the offer and transaction of corporate bonds individually in the domestic market and the offer of corporate bonds on the international market.
Under the new decree, for bonds placed on the domestic market, if the issuing company is unable to pay in full and on time the principal of the bond and the interest in VND in accordance with the announced issuance plan to investors, it is authorized to negotiate with bondholders paying the principal of the bonds and the interest due with other assets according to certain principles in accordance with the law.
Meanwhile, regulations on the maturity of bonds issued have changed, allowing companies to change the terms and conditions of the bonds.
In the event of an extension of the duration of the bond, the maximum duration must not exceed two years in relation to the duration of the bond issue plan announced to investors.
If the bondholders do not agree to modify the terms and conditions of the bond, the issuing company is responsible for negotiating to guarantee the interests of the investors. In the event that a bondholder does not agree to the trading plan, the company must fulfill all obligations to the bondholder in accordance with the bond issuance plan announced to investors.
The new decree also repealed a number of regulations, including those relating to the determination of the status of professional investors in securities as natural persons and the credit ratings of companies.
The decree entered into force on March 5./.
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