The One Central HCM twin towers project in downtown HCM City has been inactive since the end of 2022, following the arrest of Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát Group. — VNS Photo Bồ Xuân Hiệp

Bitexco Group has sold its entire stake in Saigon Glory, developer of the luxury One Central HCM towers, to Eastern Hanoi Real Estate Company Limited to address bond debt obligations amid scrutiny from bondholders.

Bitexco assures that bondholder rights will remain intact, committing to interest payments on ten bond lots from September 1, 2024, to June 18, 2025. Eastern Hanoi will take over principal and interest payments until maturity.

Despite the transfer, Saigon Glory’s capital will remain mortgaged to secure its bond obligations at Techcombank.

In 2020, Bitexco used its stake as collateral for VNĐ10 trillion (US$425 million) in bonds maturing between June 2025 and November 2026.

Saigon Glory has struggled with bond interest repayments since late 2022, following the arrest of Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát Group, currently on death row for financial fraud.

The project is tied to a massive scam involving embezzled funds, according to the HCM City’s People Court.

Saigon Glory, a subsidiary of Bitexco, is the developer of the One Central HCM project, which spans over 8,600 square metres in District 1 and has an estimated investment of $500 million.

Construction began in 2012 but has faced multiple delays.

The ongoing national anti-corruption campaign has further impacted Việt Nam’s corporate bond and real estate sectors. — VNS