Weak businesses will not be allowed to issue private bonds

At the Conference on developing a safe, transparent, efficient and sustainable capital market in order to stabilize the macro-economy and ensure major balances of the economy, Minister of Finance Ho Duc Phuc said in the quarter. In I/2022, the volume of corporate bonds (Corporate bonds) issued privately continued to increase at 105,500 billion VND; At the same time, businesses have offered to sell over VND 5,000 billion of bonds to the public. Credit institutions were the largest issuer group, accounting for 36.2% of the total issuance volume, and real estate businesses accounted for 33.26% of the total issuance volume.

Previously, the total private issuance volume in 2021 was VND 605,000 billion, an increase of 38.8% compared to 2020.

Mr. Phuc said that besides the positive results, the bond market has recently generated potential risks.

“The fast-growing corporate bond market continues to generate risks due to the fact that there are individual investors who do not have a clear understanding of the law in the investment and transactions of individual corporate bonds participating in the purchase of corporate bonds”, the Minister of Finance said. Finance said.

In addition, some cases have committed fraud when determining to become a professional securities investor to buy individual corporate bonds. The financial situation of some issuers is still limited; some enterprises have the purpose of using capital not in accordance with the announced information.

In the immediate future, Minister Ho Duc Phuc said that the Ministry of Finance will urgently submit to the Government to amend the regulations on private corporate bond issuance in Decree No. 153/2020/NDCP in the direction of reasonable tightening and strict management. Closely consulting securities companies for issuance; weak businesses are not released; narrowing down the goal of mobilizing bonds to only serve the investment and implementation of projects; After the issuance, enterprises must immediately notify the Stock Exchange and the State Securities Commission and regularly publish information on the use of money from bond mobilization. ..

The Ministry of Finance will also study and propose to the Government to submit to the National Assembly for an overall review of the provisions of the Securities Law, including the scope of public issuance, private placement, the concept of specialized securities investors. Law on Securities and regulations on handling violations on the stock market and some related contents