From April 18, issuers of government-guaranteed bonds may prematurely redeem or swap their bonds in order to reduce or restructure their liabilities.
This is provided in the Ministry of Finance’s Circular No. 34/2012/TT-BTC of March 1, guiding the issuance of government-guaranteed bonds and superseding a number of the Ministry of Finance’s Circular No. 21/2004/TT-BTC, Circular No. 29/2004/TT-BTC and Decision No. 66/2004/QD-BTC.
Government-guaranteed bond issuers are enterprises, state-run policy banks and financial and credit institutions.
Bond issuers may apply redemption or swap modes as approved in writing by competent state agencies having approved bond issuance or swap. Such a mode must be applied in a public, transparent and efficient manner.
Modes of issuance of government-guaranteed bonds comply with approved bond issuance schemes and include issuance bidding, issuance underwriting, agency and retail.
Policy banks may issue bonds through bidding channel at the Hanoi Stock Exchange or through issuance agents.
Bond issuers will elaborate and submit bond issuance schemes to competent agencies for approval, take charge for the accuracy and truthfulness of information to be disclosed to investors, properly utilize bond proceeds and pay fully bond principals and interests upon maturity.-