Under Decree 65/2022/ND-CP (“Decree 65”), before deciding to buy bonds, investors are responsible for being aware of information as follows:
Take full access to the information disclosure contents of the issuer; clearly understand the bond terms and conditions and other commitments of the issuer before deciding to buy and trade bonds.
Understand and ensure compliance with regulations on investors and private corporate bond transactions.
Grasp information on the financial situation of the bond issuer; the bond issuing purpose; plan to use capital obtained from bonds; arrangement plan of sources and payment methods of bond principal and interest; and other information related to bonds in order to assess the risks arising in the investment of bonds and to be responsible for their own investment decisions as well as arising risks (if any).
In order to grasp this information, investors can exploit information on the Corporate Bond Information Webpage at the address: https://cbonds.hnx.vn/, or request the issuer (or organization providing bidding, guaranteeing services, bond issuance agent) and the securities company where investors make transactions (or organizations/individuals owning bonds) for documents such as:
- Bond offering announcement;
- Bond issuance plan;
- Bond offering dossiers as per regulations;
- Periodic information disclosure contents of bond issuers;
- Other documents (if required).
In advance of a bond purchase, securities investors must sign a document certifying that they have adequately exploited and grasped information about bond transactions in accordance with regulations and shall be solely responsible for their decision to buy bonds after signing such confirmation. This is a new requirement in Decree 65, contributing to enhance the awareness and responsibility of investors (especially individual investors) when participating in this highly risky financial market.
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