Amended conditions for bond issuance
VGP – The Government on December 4, 2018 issued Decree 163/2018/ND-CP ("Decree 163") replacing Decree 90/2011/ND-CP dated 14 October 2011 of the Government ("Decree 90") providing on corporate bond issuance.
Question: What are conditions for bond issuance as stipulated in Decree 163?
Answer:
Regarding domestic bond issuance activities, Decree 163 abolished the bond issuance condition that is the results of production and business activities of the adjoining preceding of the issuing year must be profitable according to the financial statements audited by the State Auditor or an independent auditing organization duly operating in Viet Nam.
Decree 163 supplements the condition for completing the obligation to fully pay the principal and interest of all bonds that were issued for 03 consecutive years prior to the issuance period.
At the same time, Decree 163 supplements some conditions that enterprises issuing bonds in installments must meet.
Regarding offshore bonds, the conditions that (i) the minimum operating time of an issuing enterprise is 03 years and (ii) the production and business results of 03 consecutive years adjoining preceding the issuing year must be profitable according to the audited financial statements have been abolished by Decree 163 and supplemented with the condition that issuing enterprises must meet the conditions prescribed by the issuing market./.
