Tan Hoang Minh and the list of “black” trillion bond issuance

On the evening of April 4, the State Securities Commission issued a decision to cancel 9 bond offerings from 7/2021 to 3/2022 of companies under Tan Hoang Minh Group. The total amount raised from the offering is VND 10,030 billion.

According to research, in the second half of 2021, subsidiaries of the Tan Hoang Minh ecosystem continuously change roles and stand as legal entities to mobilize bonds with the amount of up to several hundred or several trillion.

July 5, 2021, Star Viet Real Estate Investment Co., Ltd. issued 8 million bonds with par value of 100,000 VND/bond. Total value of the issue 800 billion dong.

The purpose of the issuer is to use the proceeds of investment to buy 3,060,000 shares of Viet Tien Trade Development and Investment Joint Stock Company (equivalent to 51% of charter capital), in order to carry out Project “Investment and construction of public works, commercial services and houses in Viet Hung new urban area (Long Bien district, Hanoi)” invested by Viet Tien Company.

Mr. Do Anh Dung – Chairman of Tan Hoang Minh Group at the Thu Thiem land auction on December 10, 2021

July 6, 2021Soleil Hotel Services & Investment Joint Stock Company issues bonds with a total value of 800 billion dong.

The purpose of cash flow is to cooperate in the business of Hoang Hai complex tourist area project (Phu Quoc district, Kien Giang).

There is 1 domestic organization that holds 100% of the issued bonds.

August 20, 2021Soleil Hotel Services & Investment Joint Stock Company continues to issue bonds with a total value of 450 billion VND with a term of 24 months.

The purpose of issuance is also to cooperate and invest in Hoang Hai complex tourist area. In this mobilization, there is a credit institution and another institution, each holding 50% of the issued bonds.

September 20, 2021Viet Star Real Estate Investment Co., Ltd. issued 19 million bonds with a total value of 1,900 billion VND.

This fundraising is for business cooperation project “Investing and building a strip of land south of Dai Co Viet street”, implementing a complex of public service works, offices and apartments on Dai Co Viet street (district). Hai Ba Trung, Hanoi) invested by Nam Dai Co Viet Investment and Development Company Limited.

Similar to the previous issuance, a domestic credit institution and another one each bought 50% of the bonds.

November 1, 2021Soleil Hotel Services & Investment Joint Stock Company issued bonds with a total value of 500 billion VND. This is the third time in 4 months, this enterprise has raised capital.

The purpose of the release is still related to the Hoang Hai resort project.

There is 1 domestic credit institution and 1 other institution, each holding 50% of the issued bonds.

November 22, 2021Winter Palace Joint Stock Company issued 4.5 million bonds, total value 450 billion VND. The destination of the money is still a tourism project in Phu Quoc.

There continued to be the presence of 1 domestic credit institution and 1 other organization to buy the above bonds. Each party holds 50% of the bond.

December 16, 2021Winter Palace Joint Stock Company issues bonds with a total value of up to 3,230 billion VND. The bond has a term of 48 months, the term pays interest every 12 months. The time of issuance is right after a business belonging to the Tan Hoang Minh ecosystem won the auction of a land plot in Thu Thiem on December 10, 2021 with a price of VND 24,500 billion (8.3 times higher than the starting price).

Viet Star Company, Soleil Company and Winter Palace Company are subsidiaries of Tan Hoang Minh Group. These are unlisted enterprises, which have made 9 private bond offerings with a total value of VND 10,030 billion.

The State Securities Commission decided to cancel the bond issuances of the three companies mentioned above due to the act of disclosing false information, hiding information in the private issuance of bonds.

Tran Chung