On March 05th, 2023, the Government issued Decree No. 08/2023/ND-CP amending, supplementing and suspending the effect of some articles in the decrees regulating the private purchasing of corporate bonds in the domestic market and the purchasing of corporate bonds to the international market, thereby:
+ Article 1 Decree No. 08/2023/ND-CP has supplemented a new regulation, for corporate bonds purchasing in the domestic market, if issuing enterprise fails to pay the principal bonds in full and on time, along with its interest in Vietnam dong as declared in the issuance plan announced to investors according to Article 17 of Decree 153/2020/ND-CP, the enterprise is allowed to negotiate with bondholders to make an alternate payment by another asset for matured bonds principal and its interest under the following principle:
– Comply with the civil code and relevant laws. For conditional business and investment lines, they must also comply with the legal regulations for such conditional investment and business lines.
– Must have the consent of bondholders.
– The issuer must disclose unusual information and take full responsibility for the legal status of the assets used to pay bonds principal and its interest as regulated by the law.
+ Previously, as regulated in Point b, Clause 3, Article 3 of Decree 65/2022/ND-CP, enterprises were not allowed to change the term of issued bonds.
However, now in Article 2 of Decree 08/2023/ND-CP, issuers are allowed to extend the bond’s term, the maximum extension term shall be 02 years from the bond issuance plan announced to investors.
+ Suspension of some regulations in Decree 65/2022/ND-CP
In Article 3 of Decree 08/2023/ND-CP, the following regulations of Decree 65/2022/ND-CP shall be ceased effect until December 31st, 2023:
– Regulations on determining a professional securities investor as an individual at Point d, Clause 1, Article 8 of Decree 153/2020/ND-CP (amended in Clause 6, Article 1 of Decree 65/2022/ND-CP).
– Regulations on bonds distribution of each issuance in Clause 7, Clause 8, Article 1 of Decree 65/2022/ND-CP.
– Regulations on credit rating results for bond issuers at point e, clause 2, Article 12 of Decree 153/2020/ND-CP (amended in clause 9 Article 1 of Decree 65/2022/ND-CP).
This Decree takes effect from the signing date.
