HDBank’s registration for convertible bond issuance in foreign countries received by SSC

27-Oct-2020 Intellasia | Dau tu Online | 6:02 AM Print This Post

The State Securities Commission (SSC) announced that it has received the report on the registration for convertible bond offering of HCM City Development Commercial Joint Stock Bank (HDBank).

This issuance plan is implemented in accordance with HDBank’s Resolution of the general Meeting of Shareholders, Resolutions of the bank’s Board of directors, and current legal regulations.

Regarding the issuance of corporate bonds, in July 2020, the government issued Decree 81/2020/ND-CP amending Decree 163/2018/ND-CP.

Decree 81 took effect from September 1st 2020. It has new contents, covering the gaps that the previous Decree 163 did not cover. According to Decree 81, for non-convertible bonds or bonds without warrants, the issuer must have a minimum operating period of one year from the date of first issuance of the Business Registration Certificate.

In addition, businesses must also have the financial statement of the year preceding the year of issuance, audited by a qualified auditing organisation; and meet a number of conditions such as full payment of both principal and interests of the bonds issued in the previous three consecutive years, meeting financial safety ratios, etc.

For the issuance of convertible bonds or bonds with warrants, the issuer must be a joint stock company, meet the regulations on foreign ownership ratio, and each issuance of convertible bonds must ensure at least a six-month gap. Convertible bonds and warrants issued together with the bonds are not transferable for at least one year from the date of completion of the issuance, etc.

In the first month since Decree 81 took effect, according to data on private corporate bond issuance disclosed via the Hanoi Stock Exchange (HNX), there have been 30 issuance of corporate bonds with successful issuance value of 10.5 trillion dong, accounting for 42.7 percent of the total registered issuance value.

 

Category: Finance, Vietnam

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