Which banks are the creditors of Mr. Trinh Van Quyet and FLC Group?
In 2021, Sacombank and Bamboo Airways signed a comprehensive cooperation agreement. Besides, FLC Group also had a comprehensive cooperation agreement with OCB before.
As the relationship between the FLC group and the banks becomes closer and closer, the larger the bank loans as well as the number of BAV shares of Bamboo Airways that Mr. Trinh Van Quyet and FLC group mortgaged.
FLC Group borrows the most from Sacombank
According to the consolidated financial statements of the fourth quarter of 2021, FLC Group has VND 24,065 billion of liabilities as of December 31, 2021, accounting for 71% and total capital. Loans and financial leases alone are more than 7,205 billion VND, an increase of more than 685 billion VND.
In which, the largest creditor of FLC Group as of December 31, 2021 is Sacombank with a total outstanding short-term and long-term debt of more than 1,840 billion VND. In early 2021, FLC did not have outstanding loans at Sacombank. This group started borrowing from Sacombank after the signing ceremony of comprehensive cooperation on April 9, 2021 between Sacombank and Bamboo Airways and the ecosystem related to this airline.
Only after Sacombank, BIDV also loaned more than 1,747 billion VND to FLC, OCB (1,392 billion), NCB (634 billion), Agribank (169 billion). Notably, the loan at NCB is being secured by 60 million shares of BAV.
Both FLC Group and Bamboo Airways are chaired by Mr. Trinh Van Quyet. FLC used to be the parent company with 100% capital of Bamboo Airways and is still a major shareholder.
From October 2021 to January 2022, Trinh Van Quyet and his wife used approximately 160 million shares in Bamboo Airways as collateral for loans of FLC Group at Sacombank.
FLC Group and OCB also signed a strategic cooperation agreement on January 19, 2019, credit activities between the two sides increased rapidly after that. In 2021, FLC’s interest expense is VND375 billion, down 33% y/y and equivalent to 91% of the group’s gross profit.
Mr. Trinh Van Quyet’s FLC Group is currently a multi-enterprise ecosystem.
In addition to FLC Group, banks also lent hundreds of billions to FLCHomes Real Estate Development Business Investment Joint Stock Company (FLCHomes) and mortgaged a large amount of BAV shares owned by FLC Group and his wife. Trinh Van Quyet.
Notably, FLCHomes is not a subsidiary or affiliated company of FLC Group, nor does Mr. Trinh Van Quyet directly hold any position at FLCHomes. However, Ms. Bui Hai Huyen, a member of the Board of Directors and General Director of FLC Group, is currently the Chairman of FLCHomes.
According to the newly announced fourth quarter consolidated financial statements, as of December 31, 2021, FLCHomes is borrowing more than VND 710 billion from banks, an increase of VND 380 billion compared to the first day of the year.
In which, FLCHomes borrowed VND 108 billion from Phuong Dong Commercial Joint Stock Bank (Code: OCB) to supplement working capital. Security assets include deposits and BAV shares issued by Tre Viet Aviation Joint Stock Company (Bamboo Airways).
Of these, 5.06 million shares are owned by Mr. Trinh Van Quyet and his wife, Ms. Le Thi Ngoc Diep (Mr. Quyet’s wife), and 13 million shares are owned by FLC Group.
Notably, credit contracts between FLC Group and OCB also signed a strategic cooperation agreement on January 19, 2019.
Similarly, FLCHomes’ loan at Sacombank is nearly VND 400 billion with a term of 15 years, the purpose is to compensate for the own capital spent. The collateral includes 57.5 million shares of Bamboo Airways owned by Mr. Trinh Van Quyet and all assets/property rights belonging to and/or related to the Ha Long golf course project.
Besides, FLCHomes also borrowed nearly 200 billion VND from National Commercial Joint Stock Bank to supplement working capital. Collateral assets include 30 million Bamboo Airways shares owned by Mr. Quyet – Mrs. Diep and 30 million BAV shares owned by FLC Group.
Although it is no longer a subsidiary of FLC Group, as of June 1, 2021, Mr. Trinh Van Quyet still owns 56.5% – equivalent to 904 million Bamboo Airways shares. In September 2021, Bamboo Airways increased its capital to VND 18,500 billion, however, the holding ratio of Mr. Quyet after issuing more shares was not disclosed.
In 2017, FLC Chairman Trinh Van Quyet was once ranked as the richest person on the Vietnam stock exchange with a market capitalization of 58,852 billion VND (more than 2 billion USD), an increase of 25,046 billion VND compared to 2016.
At that time, he owned 318.5 million ROS shares, 135.3 million FLC shares and 2.6 million ART shares. This is when the market price of ROS and ART was at its heyday with peaks exceeding 166,000 VND/share and 22,000 VND/share, respectively.
However, after 2018, Mr. Quyet’s assets on the stock exchange gradually decreased, mainly due to the slide in stock prices and the fact that the Chairman of FLC also sold off his shares. Falling the most was ROS when at some point in 2020, the market price was only equal to the price of a cup of iced tea (2,000 VND/share).
Notably, at the end of 2017, Mr. Quyet was fined VND 65 million by the State Securities Commission for not reporting on the expected transaction to sell 57 million FLC shares during the period of October 20-24, 2017. .
At the end of 2021, “FLC” stocks recovered with the heat of the real estate group. Mr. Quyet’s assets also quickly increased, mainly from the code FLC. From the price of 5,000 VND/share, FLC has risen to more than 22,000 VND.
However, after the session 7/1/2022, the gaining momentum of this stock and “family FLC” was cut off when Mr. Trinh Van Quyet repeated his “undercover selling” behavior.
This time, Mr. Quyet was fined 1.5 billion VND and suspended for 5 months from trading in securities for his “undercover sale” of shares. As a result, FLC also dropped to the area of more than 10,000 VND/share. In recent sessions, the “FLC” stocks have gradually recovered slightly.
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