Control on corporate bond issuance strengthened

The Government Office, on December 3, issued a notice on strengthening the management, inspection, and scrutiny of corporate bond issuance.

The corporate bond market is an important medium and long-term capital mobilization channel for businesses under the Government's policy on balanced development between the capital market and the monetary and credit markets.

However, over the past time, enterprises have increased capital mobilization, through the issuance of corporate bonds through private placement, with a scale of over VND436 trillion in the first 11 months of 2021, an increase of 23.4 percent over the same period last year, posing many potential risks.

Therefore, Prime Minister Pham Minh Chinh requested the Ministry of Finance to urgently inspect, check, and supervise the compliance with the law on the issuance and use of capital raised from bond issuance, especially bond issuance through private placement of real estate enterprises, credit institutions related to real estate enterprises, enterprises with large issuance volume and high-interest rates, enterprises with loss-making business results, and issuers without collateral. Inspection results shall be reported to the Prime Minister before December 15.

The State Bank of Vietnam shall lead and coordinate with relevant agencies to strengthen the inspection and examination of the situation and investment activities of corporate bonds of credit institutions to promptly detect and warn of risks and take measures to handle according to regulations, ensuring the safety of the credit institution system.

The Ministry of Public Security shall coordinate with the Ministry of Finance, the State Bank of Vietnam, and relevant agencies to grasp the situation, receive information and cases with signs of violation of law to strictly handle them following the law.