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CORPORATE BOND ISSUANCE: DECREE 90/2011/NĐ-CP

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On 14 October 2011, the Government promulgated Decree 901 on corporate bond issuance, with the main contents thereof as follows:

  1. Form of enterprises  entitled to issue bonds:
    • A joint stock company; or
    • A limited liability company
  2. Conditions for  bond issuers:
    • For the  domestic  issuance:
      • The minimum par value of the bond shall be VND 100,000
      • The issuer must have been in operation for at least one year and the business activities of 05 preceding running years should be profitable.
    • For the international issuance :
      • The issuer must have been in operation for at least 03 years and the business activities of 03 preceding running years should be profitable.
      • The issued value must be certified by the SBV2 that it is appropriate with the annual overseas commercial loan quota;
      • Apart from the issuing plan, the issuer is also required to go through confirmation and registration formalities for an overseas commercial loan at the SBV.
  3. Corporate bond:
    • Bond term: decided by the issuer, but at least for 01 year.
    • Bonds can be issued: by auction, underwriting, agents or directly sold.
  4. Other regulations on required  formalities and reporting system

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(1) Decree 90/2011/ND-CP regarding enterprise bond issuance comes into effect on 01 December 2011
(2) State Bank of Vietnam