Proposal to amend regulations on private placement of corporate bonds

According to the Ministry of Finance, recently, the corporate bond market has shown signs of hot growth and mobilized illegally. Therefore, in order for the market to continue to develop sustainably, transparently and effectively, it is necessary to continue to improve the legal framework and strengthen management and supervision. The Ministry of Finance has assessed the market situation over the past time to develop a draft Decree amending and supplementing a number of articles of Decree No. 153/2020/ND-CP on private placement of corporate bonds.

Illustration

Some notable contents of the draft revised Decree include:

- Amending regulations on the purpose of bond issuance in order to strengthen the responsibilities and obligations of the issuer in using the proceeds from the bond issuance for the right purposes;

- Supplementing regulations on credit rating for some types of issued bonds in order to increase publicity and transparency, contribute to improving the quality of issued bonds, and at the same time help the market get used to using them. credit rating results to assess the risks of bonds, in line with international practices, to limit risks for investors;

- Supplementing regulations on the Bondholder Representative to strengthen the supervision of the purpose of using the bond capital of the issuer as well as strengthen the supervision of the implementation of other commitments of the issuer; how to identify professional securities investors who are allowed to invest in and trade privately issued corporate bonds;

- Supplementing regulations to accelerate the establishment of a private corporate bond trading market at the Stock Exchange for professional securities investors to increase liquidity and at the same time enhance publicity , transparency, strengthening management and supervision of bonds put into trading on the secondary market;

- Amending a number of regulations on the time limit and content of information disclosure in order to overcome the inadequacies in the past time, and at the same time enhance the transparency of bond issuers and the use of bond issuance capital.

In addition to complete the legal framework, the Ministry of Finance continues to direct the State Securities Commission and functional units to strengthen the management, supervision, and deployment of inspection teams to inspect the issuance of securities bond of real estate enterprises, credit institutions related to real estate enterprises, enterprises with large issuance volume, high interest rates, enterprises with loss-making business results, Issuers do not have collateral.