Tan Hoang Minh promises full refund after authorities cancel bonds issuance

By Minh Son   April 5, 2022 | 05:41 am PT
Tan Hoang Minh promises full refund after authorities cancel bonds issuance
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Anh Tu
Property developer Tan Hoang Minh has pledged full refund to investors after authorities canceled the issuance of bonds worth VND10 trillion ($437 million) by the group.

The group said it was working with legal advisors and related parties to review the issuance, and will fully refund investors if it is canceled following the regulator’s order.

Companies under the Tan Hoang Minh Group – Viet Star Real Estate Investment Co. Ltd, Winter Palace JSC and Soleil Hotel Service and Investment JSC –issued private bonds on nine separate occasions between July 2021 and March 2022 to raise more than VND10 trillion.

The State Securities Commission (SSC) has decided to cancel nine separate bond issuances worth over VND10 trillion (over $437 million) by Tan Hoang Minh citing submission of false information.

These issuances were canceled Monday, after the State Securities Commission (SSC) ruled that the companies had submitted false information and concealed relevant information when issuing the private bonds. All these companies are unlisted.

But the group said its bond issuance was done "in accordance with law and regulations and performed by prestigious banks and brokerages.

"Tan Hoang Minh commits that bond information given to our customers was in line with what bond issuers, valuation companies and banks provided."

The unprecedented cancellation of successful bond issuance follows a lot of attention that Tan Hoang Minh garnered after bidding to buy a land lot in HCMC's Thu Thiem Peninsula for a record VND2.45 billion ($108,000) per square meter late last year. However, the company decided to pull out of the transaction in January, forfeiting its deposit of over VND588 billion.

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