Credit institutions permitted to repurchase unlisted corporate bonds
According to the Circular, Clause 11 Article 4 of Circular No. 16/2021/TT-NHNN dated November 10, 2021 of the Governor of the State Bank of Vietnam is suspended from April 24, 2023 to the end of December 31, 2023.
During the suspension of Clause 11 Article 4 of Circular No. 16/2021/TT-NHNN credit institutions and foreign bank branches (hereinafter referred to as "credit institutions") may:
Repurchase corporate bonds that are not listed on the securities market or not registered on Upcom (hereinafter referred to as "unlisted corporate bonds") that they have sold; and/or
Repurchase unlisted corporate bonds issued in the same batch/period as the unlisted corporate bonds they sold when:
+ All the requirements prescribed in Article 4 of Circular No. 16/2021/TT-NHNN are satisfied;
+ The buyer of the corporate bonds from the credit institution has fully paid for the corporate bonds when the credit institution signs the contract for selling the corporate bonds to the buyer;
+ The issuer has the highest rating according to credit institution’s latest internal credit rating system prior to the date on which the credit institution purchases their corporate bonds.
Chief of Office, Director of the Monetary Policy Department, heads of units of the State Bank of Vietnam, and directors of branches of the State Bank of Vietnam in provinces and centrally affiliated cities, and credit institutions shall implement Circular No. 03/2023/TT-NHNN.
Circular No. 03/2023/TT-NHNN of the State Bank of Vietnam comes into force as of April 24, 2023.
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