CONDITIONS FOR OVERSEAS OFFERING OF BONDS BY PUBLIC COMPANIES

Legal basis:

– Law on securities 2019;

– Decree No. 155/2020/ND-CP.

1. What is a public company?

A joint-stock company will become a public company in one of the following cases:

  1. a) The company has a contributed charter capital of at least 30 billion VND and at least 10% of the voting shares are being held by at least 100 non-major shareholders. The joint-stock company shall submit the application for public company registration to State Securities Commission of Vietnam within 90 days from the day on which the requirements specified above.
  2. b) The company has successfully made its Initial Public Offering by registration with State Securities Commission of Vietnam.

2. Conditions for overseas offering of bonds by public companies

A public company may offer bonds overseas after State Securities Commission of Vietnam approves under the conditions. Conditions for approving overseas offering of bonds:

  1. a) The bond issuance satisfies regulations of law on foreign ownership ratio.
  2. b) There is the General Meeting of Shareholders’s decision to approve the offering plan and the plan for use of revenue obtained from the offering;
  3. c) Regulations of law on foreign exchange management are complied with;
  4. d) State Bank of Vietnam has permitted the overseas issuance of bonds in accordance with regulations of law on credit institutions in case the issuer is a credit institution; The Ministry of Finance has permitted the overseas issuance of bonds in accordance with regulations of law on insurance business in case the issuer is an insurer.