The State Securities Commission of Viet Nam (SSC) has decided to cancel nine bond issuances worth VND10.03 trillion (nearly US$439 million) from July 2021 to March 2022 by companies under Tan Hoang Minh Group.

The SSC said that due to disclosing false information and concealing information when issuing private placement, citing Decree 153 on governing private bond offerings and trading, bond issuances would be cancelled for Viet Star Real Estate Investment Company Limited, Winter Palace Joint Stock Company, and Soleil Hotel Service and Investment Joint Stock Company, all part of Tan Hoang Minh Group.

The decision takes effect from April 3.

According to the decision, bond registration and depository organisations are responsible for stopping the transfer of ownership of bonds of Viet Star Company, Winter Palace Company, and Soleil Company in nine bond issuances from July 2021 to March 2022.

The Ha Noi Stock Exchange (HNX) is responsible for publishing the cancellation information on its corporate bond information page. Viet Star, Winter Palace, Soleil, and Tan Hoang Minh Group are responsible for implementing the decision.

Viet Star Company, Winter Palace Company and Soleil Company are unlisted companies.

On April 5, Tan Hoang Minh Group released a notice related to the matter.

The company believes that the bond issuances of Viet Star Company, Winter Palace Company and Soleil Company were all processed according to the order and regulations of the law with issuance consulting, valuation advice and asset management and were performed by reputable securities companies and banks in the market.

“After receiving information from SSC, Tan Hoang Minh Group is actively working with legal consultants and related parties to review all records of the nine bond issuances announced by SSC,” the company wrote in the notice.

“In case one of these issuances has to be cancelled at the request of the state management agencies, the Group will work with bond issuers, agencies and related parties to refund the entire amount mobilised from customers in accordance with the law.”

According to the expected customer refund process, the client’s investment amount will be refunded as soon as possible for contracts that are due for payment.

For contracts that are not due for payment, Tan Hoang Minh said that it would urgently coordinate with the state management agencies, issuers, and asset management banks to process and refund customers according to the instructions and directions of authorities.

It also said that the bond information advised to customers was consistent with the information provided by the bond issuer, the collateral valuation company, and the collateral asset management bank.

The news about the cancellation of nine bond issuances has negatively affected the real estate stocks since the beginning of Tuesday's trade, with many posting significant losses.

Tasco JSC (HUT) is down 4.74 per cent at 10.30am, Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC) down 1.84 per cent, Novaland (NVL), down over 1 per cent, Development Investment Construction JSC (DIG) down 2.32 per cent, and Ocean Group JSC (OGC) down 4.43 per cent. — VNS