Another step forward for the development of financial instruments: NSSMC has developed a new document on corporate bonds

Today, bonds are a key financial instrument in the capital markets, which is in great demand and interest among businesses. Therefore, to improve the regulatory framework, NSSMC has developed and approved a new Regulation on the Procedure for the Issue of Corporate Bonds and their Circulation, which will come into force on 1 November 2024.

The new version provides for a general simplification of the requirements for the package of documents to be submitted for registration of the issue/report to NSSMC, as well as
– definition and comprehensive application of the term «corporate bonds’»;
– improvement of the procedure for issuing targeted corporate bonds, the repayment of which is carried out through the transfer of a housing construction object (part of an object);
– introducing a mechanism for replacing the issuer of corporate bonds;
– comprehensive introduction of a mechanism for the functions of the bonds’ administrator;
– improving the procedure for the conversion of bonds and the issue of convertible bonds, etc.
Importantly, the Regulation introduces a procedure for issuing green and infrastructure bonds. It describes step-by-step the specifics of issuing such bonds and the requirements for the issuer.
Among other things, the Regulation introduces new rules on:
– Enabling the bond issuer to credit unplaced bonds to its own issuer account for their subsequent disposal;
– introduction of a mechanism for cancellation (partial cancellation) of redeemed or otherwise acquired bonds by the issuer;
– the possibility of issuing secured bonds;
– application of the mechanism of passing and consideration of documents submitted to NSSMC in accordance with the requirements of the Law of Ukraine on Administrative Procedure.
The document was registered with the Ministry of Justice of Ukraine on 20 September 2024 under No. 1414/42759. The text of the Regulation is available at the following link: https://www.nssmc.gov.ua/document/?id=22240520