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In previous regulations, the Government prescribes that corporations are not allowed to change the conditions and provisions of bonds which are approved at Point c, Article 44, Decree No. 153/2020/ND-CP.
In 2022, the Government allows the corporation to change conditions and provisions of already issued bonds prescribed in Clause 3 and Clause 17, Article 1, Decree No. 65/2022/ND-CP, however, there are no specific guidelines.
To this moment, in accordance with law provisions prescribed in Article 2, Decree 08/2023, changes in conditions and provisions of bonds must ensure the principles as follows:
- Being approved by a competent authority of a bond-issuing corporation;
- Being approved by the number of bondholders representing 65% of the bond number in circulation;
- Information on the change of conditions and terms of bonds must be unusually disclosed by the bond-issuing corporation.
- The total period of extending the bond's term exceeds 2 years for the bond issuance plan and notify to bond purchasers.
- If the bondholders do not accept to change conditions, and provisions of the bond, the bond-issuing corporation shall make a plan to ensure the investor’s benefits.
In the case that bondholders do not approve the plan, the corporation must take all the obligations to the bondholders under the bond issuance plan which is made public to investors (including changes in conditions, and provisions of the approved bondholders representing 65% of the bond number).
Decree No. 08/2023/ND-CP takes effect on March 05, 2023.
