Hanoi (VNA) –The Government has issued a decree on the amendment, supplementation and cancellationof some articles of decrees related to the privateplacement and trading of privately placed corporate bonds in the domesticmarket and offering of corporate bonds to the international market.
Under the new decree, forbonds placed in the domestic market, in case the issuing enterprise is unableto pay in full and on time the bond principal and interest in VND according to the issuance plan announced toinvestors, they are allowed to negotiate with bondholders to pay bondprincipals and interests due with other assets following certain principles inline with the law.
Meanwhile, regulationson the maturity of the issued bonds were changed, allowing enterprises tochange the terms and conditions of bonds.
In case of extending the bond's term, the maximum period must not exceed twoyears compared to the term in the bond issuance plan announced to investors.
If the bondholders do not agree to change the bond's terms and conditions, theissuing enterprise is responsible for negotiating to ensure the interests ofinvestors. In case a bondholder does not accept the negotiation plan, theenterprise must fulfill all obligations towards the bondholder according to thebond issuance plan announced to investors.
The new decree also cancelled a number of regulations,including those on determining thestatus of professional securities investors as individuals and corporate creditratings.
The decree took effect from March 5./.
Under the new decree, forbonds placed in the domestic market, in case the issuing enterprise is unableto pay in full and on time the bond principal and interest in VND according to the issuance plan announced toinvestors, they are allowed to negotiate with bondholders to pay bondprincipals and interests due with other assets following certain principles inline with the law.
Meanwhile, regulationson the maturity of the issued bonds were changed, allowing enterprises tochange the terms and conditions of bonds.
In case of extending the bond's term, the maximum period must not exceed twoyears compared to the term in the bond issuance plan announced to investors.
If the bondholders do not agree to change the bond's terms and conditions, theissuing enterprise is responsible for negotiating to ensure the interests ofinvestors. In case a bondholder does not accept the negotiation plan, theenterprise must fulfill all obligations towards the bondholder according to thebond issuance plan announced to investors.
The new decree also cancelled a number of regulations,including those on determining thestatus of professional securities investors as individuals and corporate creditratings.
The decree took effect from March 5./.
VNA