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issue bonds must meet the following conditions:
there is a need to mobilize capital in several
batches in line with the purpose of issuing bonds
already approved by competent authorities, the
bond issuance plans with the number of issuance
drives, expected volumes, issuance time and
plan on capital use of each issuance drive must
be clarified, enterprises must also ensure that the
issuance time of each batch shall not be extended
over 90 days in accordance with the law on
securities; the disclosure of information must
be in accordance with regulations. When satisfy
conditions mentioned above, issuing enterprise
may issue bonds in multiple installments but not
exceeding 12 months.
Furthermore, in order to clarify regulations
on bond issuance dossiers and create favorable
conditions for enterprises to issue bonds, the
draft decree stipulates that enterprises’ annual
financial statements must be audited and is a
full approval. When the audit opinion is an
exception, the exception must not affect the
offering conditions and the firm must explain the
exclusion and impact of the exclusion factor on
the financial result and ability of the repayment
of principal and interest of corporate bonds. At
the same time, the draft decree specifies the use of
audited financial statements of parent companies,
subsidiaries, and companies formed after the
merger or consolidation process in the bonds.
Regarding the authority to approve bond
issuance plans, in order to be consistent with the
provisions of the Law on Management and Use
of State Capital for Investment in Production and
Business inEnterprises and the current regulations
of the Government Regarding capital mobilization
In addition, it is necessary to supplement
regulations in the direction of unifying the basis
of determination of interest of corporate bonds
in accordance with international practice, similar
to the regulations of bond interest calculation
method of the government, facilitating investors in
trading and valuing corporate bonds. At the same
time, in order to create more favorable conditions
for good companies to issue bonds, relevant
authorities should consider the conditions of
issuance. It is necessary to clarify the provisions
of the due debt without payment within three
years; give specific guidance on the regime and
contents of information reports which enterprises
issue bonds must meet.
In order to remove the difficulties and support
the positive development of the market, in the
coming time, the drafting agency has made many
progressive and positive solutions. Accordingly,
in relation to the conditions for issuance of bonds,
receiving opinions of ministries and branches in
the process of collecting opinions on the proposal
for development of the Decree, the draft decree
basically upholds the regulations on conditions
of distribution to issue bonds in Decree No.
90/2011/ND-CP. At the same time, on the basis
of reviewing the current regulations on capital
mobilization conditions of enterprises, the draft
decree supplemented and amended a number of
provisions on conditions for issuance of bonds.
Specifically, with the issuance of bonds divided
into several issuance, to create conditions for
enterprises to mobilize capital into many waves,
in accordance with the progress of disbursement
and investment projects, the draft decree added
to the regulations that enterprises that wish to
Corporate bonds issued by industry
Other
Mining
Production
Banking
Infrastructure
Stocks
Real estate
FIGURE 2: CORPORATE BONDS ISSUED
BY INDUSTRY
Source: VCBS
Vietnam
Japan
China
Thailand
FIGURE 1: THE RATIO OF CORPORATE BONDS TO THE
ECONOMIES OF SOME COUNTRIES IN THE REGION
Source: Bloomberg
