The deal to mobilize trillions of exotic corporate bonds related to Van Thinh Phat
doyen1988 Yesterday, 23:36

In parallel with the inflow of billions of dollars into the Van Thinh Phat group, the recently released information shows that a number of businesses in the group that issue huge bonds are related to the Saigon – Ba Son Complex.

The Saigon – Ba Son Complex No. 2 Ton Duc Thang is divided into 8 plots, including 7 functional residential land areas including HH1 (8,999.3 m2), HH2 (3,825.5 m2), HH3 (2,899 m2) ), HH4-1 and HH4-2 (6,167.2 m2), HH4-3 (7,141.3 m2), HH5-1 (3,558 m2) and land with office function VP2 (6,042 m2). (Photo: Thanh Nien Newspaper)

On August 31, Quang Thuan Investment Joint Stock Company issued 60 bond lots with term of 60 months with a total value of 6,000 billion dong. The release does not say the interest rate or collateral for the bonds, nor is it clear who the settlers are and who the bondholders are.

This is not the first time Quang Thuan attracts trillions of dong in bonds. Before that only on December 24 and 27, 2018, this company issued VND 4,500 billion through 31 odd lots.

Likewise, details about the releases are unknown. Only when the enterprise finalized 3 trillion dong of bonds on October 21, 2019, the bondholders of this batch of bonds were revealed to be Saigon – Hanoi Commercial Joint Stock Bank (SHB).

Thus, in the period of 2018 – 2020, about 10,500 billion VND has flowed to Quang Thuan. Meanwhile, the report summarizing the financial situation for the first 6 months of 2020 shows that the business results of the business have not been outstanding in recent years.

Profit after tax in the first half of this year was recorded at VND 1.5 billion, down 42% year on year. Liabilities of the enterprise as of June 30, 2020, before the time of mobilizing 6,000 billion dong of bonds, is over 1,500 billion dong.

(Source: Nguyen Ngoc compiled from HNX)

The shareholders are “Truong” and the strange capital raising deal

Quang Thuan was established in late March 2001. In addition to General Director Lam Ngoc Dan Thi (Cham people), the founding shareholders of Quang Thuan also include: Mohamed Lam Minh Thong, Tran Thi Mai Trinh, Ngo Thanh Lan, Dang Trinh Thanh Phuong, Nguyen Van Sa.

Truong Me is a shareholder of Van Thinh Phat Group (5%), Anh Vu Company Limited (50%), Saigon Kien Phu Investment Consulting JSC (20%), Emerald JSC (15.33%), and JSC Trans Pacific Partners (13.07%), Dang Co Investment Services JSC (9.92%).

Truong Chi Trung is a shareholder of Van Thinh Phat Group (5%) and Saigon Kien Phu Investment Consulting Joint Stock Company (20%).

Truong Lap Hung is a shareholder of Norah (20%), INN Saigon JSC (80%), and Emerald JSC (28%).

Lam Thi Hoa is a shareholder of Van Thinh Phat Group (5%), Dang Co Investment Services Joint Stock Company (19.84%) and was a shareholder of Saigon Kim Cuong Joint Stock Company.

The majority of these shareholders also hold many stakes in real estate businesses related to Van Thinh Phat Group. For example, Ms. Lam Ngoc Dan Thi owns nearly 45% capital in Sunny World Investment and Development Joint Stock Company, Ms. Dang Trinh Thanh Phuong holds 60% of capital in Norah Interior Design and Decoration JSC.

In early March 2014, Quang Thuan announced an increase in charter capital from VND 150 billion to VND 1,100 billion. At the same time, the company’s branch was moved from Lucky Plaza Center (38 Nguyen Hue) to Van Thinh Phat Building at 193-203 Tran Hung Dao.

Not long after that, shareholders with the family name Truong and related people also appeared: Truong Me (4.82%), Truong Chi Trung (1.45%), Lam Thi Hoa (1.45%), Truong Lap Hung (0.96%), Truong Hue Van (0.96%).

The remaining shares of Quang Thuan belong to three individuals including Ngo Thanh Lan (31.45%), Mohamed Lam Minh Thong and Tran Thi Mai Trinh (29.05% each).

After the capital increase at the beginning of 2019, in March this year, Quang Thuan continued to increase its capital from 1,610 billion VND to 2,610 billion VND.

(Source: Nguyen Ngoc compiled from the enterprise change registration reports)

Mortgage with “deposit agreement”

Before issuing trillion dong of bonds as mentioned above, on July 10, 2020, Quang Thuan signed a deposit agreement to receive the transfer of “target area” at the 6,042 square meter land plot of the Saigon Complex. – Ba Son (The Sun Tower) from Capitaland Tower Company Limited, an organization related to Van Thinh Phat is an investor.

On August 6, Quang Thuan pledged this deposit agreement at Vietnam Technological and Commercial Joint Stock Bank (Techcombank).

Coincidentally, this is also the asset that Ho Chi Minh City Trading and Services Joint Stock Company (Setra) pledged at Techcombank on August 6, after Setra issued 31 lots of bonds with a total value of VND 3,750 billion. .

And yet, the deposit agreement to receive the project transfer between Setra – Capitaland Tower and Quang Thuan – Capitaland both took place on the same day.

The above information raises questions about the relationship between Quang Thuan – Setra, Setra – Van Thinh Phat, as well as the unknowns about the new owner of 8 plots of land in the Saigon – Ba Son complex.

One scenario to consider in this case is that Setra and Quang Thuan have silently merged or Setra has taken control of Quang Thuan.

Although there are not enough bases to confirm, according to experts, it is likely that this is a form arranged to reverse the old debt of the investor.

Capital flows of billions of USD poured into Van Thinh Phat group

Not only Quang Thuan, many businesses in the same group have continuously issued bonds since 2018, attracting billions of dollars in capital flows. Meanwhile, the size of bonds issued by these businesses is much higher than the registered charter capital.

Typical cases such as An Dong Investment Group Joint Stock Company, a member of Van Thinh Phat Group, has issued up to 25,000 billion dong of bonds but the charter capital is only 9,000 billion dong.

Or as Norah issued 3,500 billion dong of bonds but its charter capital was only 1,200 billion dong, Sunny World issued 3,100 billion dong of bonds, double the charter capital of 1,500 billion dong of the business.

Without any information about the parties to arrange this huge capital flow, as well as who is the bondholders of the debts, how did the group of businesses use this capital?

(Source: Nguyen Ngoc compiled from HNX)

Source: – Translated by