LLC and ALC received the right to issue corporate bonds
22/07/2020 17:05
LLC and ALC received the right to issue corporate bonds
22/07/2020 17:05
Tashkent, Uzbekistan (UzDaily.com) - The President of Uzbekistan signed a law to amend and supplement 11 legislative acts, including the laws "On joint stock companies and protection of shareholders’ rights", "On limited and additional liability companies" and "On the securities market".
Thus, according to the amendments made to the Law "On the Securities Market", corporate bonds are bonds issued by joint stock companies, limited and additional liability companies (LLC and ALC).
Corporate bonds are now issued subject to the following updated terms:
- within the limits of the equity capital of the issuer as of the date of the decision on their issue. If the amount of corporate bonds exceeds the amount of the issuer’s equity capital, then the issuer is obliged to provide collateral in excess of the amount;
- issuers with positive indicators of profitability, solvency, financial stability and liquidity over the last year;
- availability of an auditor’s report on financial statements for the last year preceding the bond issue;
- with the participation of commercial banks acting as payment agents for the payment of funds due to investors by issuers.
Infrastructure bonds are now issued subject to the following updated terms:
- within the limits of the equity capital of the issuer as of the date of the decision on their issue. If the amount of corporate bonds exceeds the amount of the issuer’s equity capital, then the issuer is obliged to provide collateral in excess of the amount;
- availability of an auditor’s report on financial statements for the last year preceding the bond issue;
- proceeds from the placement of infrastructure bonds are used to finance the project provided for in the decision of the President or the Cabinet of Ministers.
Enterprises with state shares of the state of 50% or more, as well as state enterprises, issue infrastructure bonds in agreement with the Ministry of Finance.
Additional conditions for the issuance of corporate and infrastructure bonds are established by the authorized government agency for the regulation of the securities market.
Also, the rule of part three of Article 30 of the Law "On Joint Stock Companies and Protection of Shareholders’ Rights" was excluded, according to which the JSC was entitled to issue property-backed corporate bonds within the amount of equity capital as of the date of the decision to issue them.
At the same time, the Law "On Limited and Additional Liability Companies" was supplemented with Article 28, according to which LLC and ALC are entitled to issue and place bonds in the manner prescribed by law.
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