Decree No. 153/2020/ND-CP dated December 31st, 2020 of the Government on prescribing private placement and trading of privately placed corporate bonds in domestic market and offering of corporate bonds in international market

This Decree provides for conditions and procedures for offering of corporate bonds (of joint-stock companies or limited liability companies) in the domestic and international markets.

In comparison with the earlier regulations, this Decree removes some conditions for offering non-convertible bonds without warrant (ratio of outstanding debt to corporate bonds, hiring consultancy organization for providing consultancy on bond issuance dossiers; minimum operating period of issuer, etc.)

However, according to the new regulations, there is an interval of at least 06 months between two offerings of convertible bonds or warrant-linked bonds.

Regarding offering of bonds in international market, this Decree supplement the requirement according to which it is required to meet the ratio of holding by foreign investors upon conversion of bonds into shares and execution of warrants.

This Decree takes effect from January 1st, 2021. To replace Decree No. 163/2018/ND-CP dated December 4th, 2018 and Decree No. 81/2020/ND-CP dated July 9th, 2020.