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| A bondholder shows her ABOND bonds __Photo: VNA |
The Ministry of Finance has submitted to the Government a draft decree on the offering and trading of privately placed corporate bonds on the domestic market and on the offering of corporate bonds to international markets, expected to replace Decree 153 of 2020.
Under the draft, only professional securities investors would be permitted to purchase, trade in or transfer non-convertible bonds without warrants. Meanwhile, both professional securities investors and strategic investors may purchase, trade in or transfer privately placed convertible bonds or bonds with warrants.
A professional securities investor may be an organization defined in the Law on Securities. An individual may also qualify as a professional securities investor if he holds a portfolio of listed securities or securities registered for trading valued at VND 2 billion or more, calculated based on the average market value over 180 consecutive days prior to the date the investor is certified as a professional securities investor.
Strategic investors are individuals or organizations selected by bond issuers based on the criteria of financial capacity and technological level, and having made a commitment to cooperating with issuers for at least three years. The total number of strategic investors in an offering may not exceed 100.
The verification of the status of professional securities investors and strategic investors would be carried out before they purchase bonds.
Before purchasing bonds in both primary and secondary markets, individual professional securities investors would have to sign a written confirmation stating that they have fully reviewed offering information, understood bond terms, and acknowledged all risks, thereby taking total responsibility for their investment decisions.
In transactions involving the purchase, sale or transfer of privately placed bonds, investors may not transfer bonds to parties who are not eligible for bond trading. Sellers are required to provide buyers with all disclosure information released by bond issuers when conducting secondary market transactions. Payments for bond purchases or transfers would be made by cashless methods.
After participating in an offering, investors would be fully provided with information about and dossiers on the offering. They would enjoy timely principal and interest payment in accordance with bond terms upon maturity, and may exercise accompanying rights.
In specific cases, bondholders would be entitled to require bond issuers to redeem bonds prior to maturity. If investors purchase bonds from sellers on the secondary market, they have the right to request sellers to provide all disclosure information issued by bond issuers.- (VLLF)
