Government Issues New Regulations on Corporate Bond Issuance

Are you ready to learn about some exciting changes in the world of corporate bonds in Vietnam? The Government of Vietnam has just released Decree 08/2023/ND-CP, which introduces several amendments and supplements related to private offering and trading of corporate bonds.

Government Issues New Regulations on Corporate Bond Issuance
On March 5, 2023, the Government issued Decree 08/2023/ND-CP to amend, supplement, and suspend the effect of certain Articles of Decrees on regulations concerning private offering and trading of corporate bonds. The new decree is expected to provide enterprises with greater flexibility in managing their bond issuances.

One of the key changes introduced by the decree is that enterprises can now pay the bond principal and interest with assets other than cash. This change will allow companies to better manage their cash flow and liquidity by using assets such as stocks, real estate, or equipment to make payments.

Another significant change is that enterprises will be able to change the terms and conditions of their bonds under certain circumstances. This will enable companies to adjust their bond issuances in response to changing market conditions or other factors that may affect their ability to meet their financial obligations.

The decree also allows enterprises to extend the term of their bonds for up to two years. This change is expected to provide greater flexibility for companies that may be facing financial difficulties or other challenges that make it difficult to meet their debt obligations in the short term.

In addition to these changes, the decree also suspends the effect of several provisions of Decree 65/2022/ND-CP until the end of December 31, 2023. These provisions include regulations on determining the status of professional securities investors as individuals, regulations on the time of distribution of bonds for each issuance, and regulations on credit rating results for bond issuers.

Overall, the new regulations introduced by Decree 08/2023/ND-CP are expected to provide greater flexibility and support for enterprises in managing their bond issuances. Companies will now have more options for paying their debt obligations, adjusting their bond terms, and extending their bond maturity dates. These changes are expected to contribute to a more vibrant and dynamic corporate bond market in the years ahead.

Bài viết cùng chủ đề: Legal Knowledge Center