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- 05 / 10 / 2020 -
Conditions for issuing non-convertible bonds and bonds without warrants

On July 9 th ,2020, the Government issued Decree No.81/2020/ND-CP mendments to the
government’s decree no. 163/2018/nd-cp dated december 04 th , 2018 on issuance of corporate
bonds, the document takes effect from September 1 st , 2020.
One of the adjustments and supplements that are considered outstanding is the conditions
for issuing non-convertible bonds or bonds without warrants. Accordingly, in addition to the
conditions specified in Decree 163/2018/ ND-CP, Decree 81/2020/ND-CP has added the
following conditions:
(1) It has signed a consulting contract with a consultancy organization providing
consultancy on bond issuance dossiers as prescribed in Clause 3 Article 15 hereof, unless
the issuer is licensed to provide consultancy on bond issuance dossiers as prescribed by law.
(2) Total outstanding debt on corporate bonds issued through the private placement at the
time of issuance (including the planned amount of bonds to be issued) does not exceed 05
times the owner’s equity stated in the financial statements of the latest quarter preceding the
time of issuance approved by a competent authority.
(3) Each bond issue must be completed within 90 days from the date of publishing of
information before the bond issue; the interval between two issues must be at least 06
months; bonds issued in an issue must have the same terms and conditions.
(4) Credit institutions issuing bonds are not required to satisfy the requirements laid down
in item (2) and item (3) of the above conditions.
Thus, the conditions for issuing corporate bonds have been specified and stricter than the
current regulations in order to continue operating and developing a safe and sustainable corporate
bond market.