Vietinbank and Saigon Hanoi Commercial Joint Stock Bank (SHB) said that they do not provide securities and payment guarantee services, do not invest and distribute bonds issued by Tan Hoang Minh Group.

On Wednesday, Vietinbank released an announcement related to nine bond issuances of companies under Tan Hoang Minh Group that have recently been cancelled by the State Security Commission (SSC) of Viet Nam.

The bank affirmed that it does not provide underwriting securities and payment guarantee services, and does not distribute bonds of these issuances.

Vietinbank provides account and asset management services for the bond issuances of Soleil Hotel Service and Investment Joint Stock Company, Viet Star Real Estate Investment Company Limited and Winter Palace JSC, with a total value of VND6.53 trillion (US$285.6 million).

Service provision is carried out on the basis of the Law on Credit Institutions 2010 and Operation License No. 142/GP-NHNN dated July 3, 2009 issued to Vietinbank by the State Bank of Viet Nam (SBV), whereby Vietinbank is allowed to provide account and asset management services.

For account management services, Vietinbank provides account opening services to serve the receipt and payment of the issuer's obligations related to bonds under the Bond Account Management and Holding Contract and in accordance with the law.

For asset management services, Vietinbank is only responsible for managing collateral, checking and monitoring the status of collateral and dealing with investors with bonds with collateral under the collateral management contract and in accordance with the law.

Also on Wednesday, SHB said that it only provides account and collateral management services for bond issuances of Soleil and Viet Star, each worth VND800 billion. The provided services are in accordance with the law.

The bank asserted that SHB does not provide underwriting securities and payment guarantee services, and does not invest and distribute bonds from these two issuances.

It commits to taking all responsibilities in providing account and collateral management services for these issuances.

Meanwhile, SBV has just issued an official dispatch to credit institutions and foreign bank branches requesting to strictly implement some steps to guarantee safe operations, including controlling the credit extension offerings in some risky industries.

Accordingly, the state bank requests credit institutions to tighten control the credit growth in line with targets assigned by the SBV in 2022, and in accordance with monetary and credit policy stances, and banking activities of the Government and the state bank.

For industries with potential risks or affected by the COVID-19 pandemic, SBV requires credit institutions to strictly control the increase of outstanding credit and credit quality. This includes tightening the control of credit extension offerings for customers borrowing capital to participate in land auctions to ensure compliance with the provisions of the law, and promptly reporting to SBV when detecting signs of legal violations.

In the document, the state bank also demands credit institutions prepare to restructure the system of credit institutions in the 2021-2025 period. — VNS