Công văn 1354/BTC-TCNH

To: …………………………………………………………………..

Pursuant to Circular No. 17/2012/TT-BTC dated February 08, 2012 on domestic issuance of bonds, the Ministry of Finance promulgated the Decision No. 3152/QD-BTC dated December 18, 2013 to issue the list of bidders for Government bonds in 2014; Pursuant to Article 10 and Article 13 of Circular No. 17/2012/TT-BTC the Ministry of Finance hereby provides guidelines for the regulations on benefits, obligations, and criteria for assessing bidders for Government bonds in 2014 (hereinafter referred to as bidders) for the purpose of assessing the operation in 2014 as follows:

1. Benefits and obligations when participating in the Government bond auction

1.1. Benefits of bidders

Bidders have the benefits prescribed in Clause 1 Article 10 of Circular No. 17/2012/TT-BTC dated February 08, 2012 on domestic issuance of Government bonds.

1.2. Obligations of bidders

The Ministry of Finance hereby provides instructions on obligations of bidders which are prescribed in Clause 2 Article 10 of Circular No. 17/2012/TT-BTC

a. Obligation to participate in the auction

Bidders are obliged to participate in the auctions for treasury bonds and treasury bills held by the State Treasury, the Stock Exchange of Hanoi, and the State Bank Exchange as prescribed in Point a Clause 2 Article 10 of Circular 17/2012/TT-BTC Where the State Treasury invites bids for bonds with various terms in the same auction session, every bidder must bid for at least 01 kind of bonds among them during the auction session.

b. Obligation to participate in auctions with fair interest rates

Bidders are obliged to participate in auctions with fair interest rates, which are determined according to one of the two bases below:

+ If there is a successful bidder in the bond auction session, the fair interest rate is the interest rate equal to or lower than the interest rate offered by the successful bidder plus (+) 200 basis points; or

+ If there is no successful bidder in the bond auction session, the fair interest rate is the interest rate equal to or lower than the weighted mean of all interest rates offered by the bidders in the session plus (+) 200 basis points.

c. Required amount of Government bonds purchased

Over the assessment period (from November 01, 2013 to October 31, 2014), securities companies are obliged to buy at least VND 1,800 billion, commercial banks are obliged to buy at least VND 3,500 billion, including treasury bonds issued via the Stock Exchange of Hanoi and treasury bills issued by the State Bank Exchange. The required amounts prescribed above include treasury bonds and treasury bills purchased for clients.

s. Obligations to pay for Government bonds

Bidders are obliged to make sufficient and timely payments for treasury bonds and treasury bills in accordance with Article 30 of Circular No. 17/2012/TT-BTC and Article 14 of Joint Circular No. 106/TTLT-BTC-NHNN

e. Obligations to post bid prices/offer prices

Bidders are obliged to post bid prices/offer prices on the system on the Yield Curve System at least 60% of the auction sessions as prescribed in Decision No. 160/QD-UBCK dated March 15, 2012 on regulations on bidding for and offering Government bonds, its amendments and replacements (if any).

f. Obligations to report

Bidders are obliged to submit quarterly and annual reports in accordance with Clause 2 Article 10 of Circular No. 17/2012/TT-BTC Bidders shall submit monthly reports to the Stock Exchange of Hanoi (using the form provided by the Stock Exchange of Hanoi) and the Ministry of Finance. Reports may be sent to the Ministry of Finance via any of the following emails: (1) [email protected]; and (2) [email protected].

1.3. Any bidder who fails to fulfill the obligations prescribed in Point 1.2 shall be disqualified by the Ministry of Finance as prescribed in Article 14 of Circular No. 17/2012/TT-BTC.

2. Ratings of bidders

- Pursuant to Article 13 of Circular No. 17/2012/TT-BTC the Ministry of Finance has rated the bidders in 2014 according to the criteria mentioned in Point 1.2 and the criteria in Appendix 3 of Circular No. 17/2012/TT-BTC In particular:

Notes: * Equity and ratio of post-tax profit to equity is determined according to the balance sheet and the financial statement (audited) of the bidder for the latest financial year before the rating date.

- In 2014, bidders are rated as prescribed in Article 2 of this Dispatched to determine the group of bidders that are active on the market. The ratings are not meant to disqualify bidders. The Ministry of Finance shall announce the ratings of bidders in accordance with Article 13 of Circular No. 17/2012/TT-BTC in order to encourage bidders to be more active on the bond market in the next year.

3. This Dispatch replaces the Dispatch No. 854/QD-BTC dated January 16, 2013 of the Ministry of Finance on experimental assessment of bidders for Government bonds in 2013.

Bidders for Government bonds in 2014 are responsible for implementation of this Dispatch. 2014 is the second year of experimental assessment of bidders according to Circular No. 17/2012/TT-BTC Since the market is tumultuous, bidders are recommended to report every difficulty to the Ministry of Finance for guidance./.