Decree No. 08/2023/ND-CP is an important regulation on bonds in Vietnam, aiming to create favorable conditions for units issuing, buying, selling and managing bonds, while protecting the rights of bondholders. consumption and reduce risks for investors in the financial market.
Decree No. 08/2023/ND-CP (Decree No. 08) effective from March 5, 2023 will amend, supplement and suspend the implementation of a number of articles in the old Decree on offering and corporate bond trading. The following are notable new points of the Decree:
1. To pay for mature bonds with assets
According to the old regulations in Decree No. 153/2020/ND-CP, bond issuing enterprises are only responsible for: Full and timely payment of bond interest and principal upon maturity and exercise of accompanying rights (if applicable). yes) to the bond owner according to the terms and conditions of the bond.
Currently, according to Decree No. 08, businesses can issue bonds and use their legal assets to negotiate with investors if they have difficulty paying bond principal and interest. This regulation helps businesses reduce payment pressure and improve their financial situation.
However, this is based on the principle of compliance with the provisions of civil law and related laws, the consent of investors and must ensure the legality of assets as well as the disclosure of information. Related information.
2. Extend bond interest and principal payments for another 2 years
Previously, businesses were not allowed to change the term of bonds issued according to Point b, Clause 3, Article 3 of Decree 65/2022/ND-CP on amending and supplementing a number of articles of the Decree. 153/2020/ND-CP.
However, according to Decree No. 08, if businesses encounter difficulties, they can negotiate with investors to extend the bond period. The maximum extension period is 02 years, in principle with the agreement of investors.
In case the investor does not agree, the enterprise must still perform its obligations on the basis of the provisions in the announced plan.
3. Postpone regulations on corporate credit ratings
According to previous regulations, the credit rating of the bond issuing enterprise (if credit rating is required) is one of the basic documents of the bond offering dossier. However, according to the new regulations in Decree No. 08, the Government has suspended the implementation of this regulation. Specifically:
– Cease regulations on identifying individual professional securities investors.
– End the regulations on issuer credit ratings.
– Terminate the issuance of a bond batch in a timely manner.
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