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Draft rules on property firms’ international bond issuance contested
The National Assembly (NA) Standing Committee has expressed concern over regulations in the draft revised Securities Law allowing local real estate companies to issue bonds on the international market.
At a discussion session of the NA Standing Committee on the draft revised Securities Law on September 9, NA Chairwoman Nguyen Thi Kim Ngan wanted to know which agencies would be in charge of controlling the issuance of bonds by real estate firms and how they would be controlled.
The NA Standing Committee had earlier agreed to add regulations to Decree 163/2018/ND-CP on the issuance of corporate bonds. However, some problems may arise if these regulations are added into law, NA Vice Chairman Phung Quoc Hien remarked.
Specifically, the capital mobilization of non-public enterprises will be stipulated in two separate laws. They can mobilize capital from share offerings in line with the Enterprise Law and from bond issuances in accordance with the Securities Law.
In addition, the Enterprise Law includes regulations on bond private placements, so it is unnecessary to add these regulations to the Securities Law.
Moreover, it is hard to assess the impact of Decree 163/2018/ND-CP as it has been valid for only eight months.
Therefore, the NA’s Economic Committee proposed the Securities Law should include regulations on public companies’ share issuances, while regulations on non-public enterprises’ share issuances, including bond private placements, should be stated in the Enterprise Law.
If enterprises’ corporate bond issuances are not effectively managed, the capital and interests of investors may be compromised, Hien added.
Meanwhile, Minister of Finance Dinh Tien Dung noted that bonds offered through private placements by non-public enterprises were goods on the stock market. The inclusion of regulations on bond private placements in the Securities Law is in line with international practices.
In addition, regulations on bond issuance conditions and procedures and on post-issuance inspections cannot be added to the Enterprise Law.
The regulations on non-public enterprises’ bond private placements should be added to the revised Securities Law to create an adequate and comprehensive legal framework for enterprises and management agencies, the minister stressed.
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