Circular No. 03/2023/TT-NHNN dated April 23rd, 2023 of the Governor of State Bank of Vietnam on suspension of effect of clause 11 Article 4 of Circular No. 16/2021/TT-NHNN on corporate bond trading of credit institutions and branches of foreign banks

This Circular is to suspend the effect, from April 24th, 2023 to the end of December 31st, 2023, of the regulations on credit institutions not allowable to re-purchase corporate bonds within 12 months after they have sold such corporate bonds as regulated at clause 11 Article 4 of Circular No. 16/2021/TT-NHNN .

During the aforesaid suspension period (from April 24th, 2023 to the end of December 31st, 2023), credit institutions are allowed to re-purchase the sold corporate bonds that are unlisted on securities market or unregistered on Upcom trading system and/or re-purchase unlisted corporate bonds issued in the same batch/period as the sold unlisted corporate bonds when:

a) All regulations at Article 4 of Circular No. 16/2021/TT-NHNN are satisfied;

b) The buyer of the corporate bonds from the credit institutions must settle all corporate bond purchase expenses when the credit institutions sign contract for selling corporate bonds to the buyer;

c) The issuer is at the highest rating according to the latest internal credit rating system prior to the date on which the credit institutions purchase its corporate bonds.

This Circular takes effect from April 24th, 2023.