New guidelines on issuance of international bonds in Vietnam

ANT Lawyers – On July 16th the new law on international bonds has been promulgated.  Accordingly, the State Bank of Vietnam issued Circular No. 17/2013/TT-NHNN guiding on foreign exchange management concerning the issuance of international bonds. Enterprises that wish to issue international bonds will have to have the permission to use overseas loan and repayment accounts of foreign bank branches that belong to licensed credit institutions. This Circular furthermore describes specific the certification of registration and certification of changes in registered international bond amounts to be issued by enterprises without governmental guarantee and specifies guidelines for the opening and usage of foreign-currency accounts for the issuance of international bonds. In connection to that, the enterprises that wish to issue this bonds could purchase foreign currencies to pay bond principals, interests and charges but they must be able to prove their payment needs according to regulations on foreign exchange management.  The enterprises that deal with such international bonds must have their issuance plans to be registered and certified by the State Bank and thereafter the enterprises are only allowed to withdraw capital from this bonds for purposes as stated in the plan. This Circular will be effective for enterprises wishing to deal with international bonds from September 1st, 2013.

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