The shadow of Hung Ngan Group after 2,000 billion VND of Saigon Capital's bonds

According to the National Business Registration Portal, at the end of October 2023, Saigon Capital Joint Stock Company (headquartered in Ho Chi Minh City) announced a change in the company's legal representative.

Accordingly, Mr. Nguyen Trong Tuan (born in 1978) was introduced as the person taking on the role of Director and legal representative of Saigon Capital, replacing Mr. Hoang Van Minh (born in 1989). This move took place in the context that this enterprise had just successfully mobilized 2 bond lots with a total mobilized value of up to 2,000 billion VND.

Specifically, on October 5, 2023, Saigon Capital announced that it had successfully issued a bond lot coded SGGCH2328002, with an issuance value of VND 1,000 billion, term of 60 months. Interest rate 12.5%/year, interest payment every 6 months.

Previously, on September 29, Saigon Capital successfully issued the SGGCH2328001 bond lot with similar value, interest rate, and 60-month term. Both of these bond lots have HD Securities Corporation (HDS) as the depository organization.

Saigon Saigon Capital mobilized a total value of up to 1,000 billion VND. Photo: Screenshot. — Saigon Capital mobilized a total value of up to 1,000 billion VND. Photo: Screenshot.

It is noteworthy that, one day before the issuance of bond lot SGGCH2328001, that is, September 28, 2023, Saigon Capital used all property rights and benefits arising from the Business Cooperation Contract with Hiep Phong Vietnam Limited Liability Company (investor of Our City Urban Area in Hai Thanh Ward, Duong Kinh District, Hai Phong City) as collateral for credit transactions at HDBank .

At the same time, all balances and property rights arising from the specialized account for managing capital mobilization from bonds issued by Saigon Capital are guaranteed to be opened at HDBank.

The above credit transactions accidentally revealed that Saigon Capital's goal of raising 1,000 billion VND in bond capital was to invest in contributing capital to build the Our City Urban Area project.

The secured transaction revealed the purpose of Saigon Capital's bond issuance. Photo: Screenshot.

It is known that Our City Urban Area has a scale of more than 43 hectares, was started by Hiep Phong Vietnam Co., Ltd. in 2008 and was planned to be completed within 5 years. However, by the end of 2022, 15 years since the commencement date, the project has only been invested in construction on an area of nearly 8 hectares of land; the remaining area has not yet been put into use.

Previously updated in May 2019, the charter capital of Hiep Phong Vietnam Company Limited reached 526 billion VND, 100% owned by Qia Feng (Holding) Limited (Hong Kong, China).

However, in February 2023, Mr. Nguyen Dac Diem (born in 1958) became the new General Director, the legal representative of the enterprise, after Qia Feng (Holding) Limited withdrew.

Mr. Nguyen Dac Diem is also known as the Chairman of the Board of Directors of Hung Ngan Group (Hung Ngan Housing and Trade Investment Joint Stock Company), headquartered in Dong Da district, Hanoi .

Interestingly, Mr. Nguyen Trong Tuan - the new Director of Saigon Capital was a founding shareholder and also held the role of General Director and legal representative of Hung Ngan Housing and Trade Investment Joint Stock Company before May 2017.

By February 2021, Mr. Tuan was updated as the legal representative and General Director of Hung Ngan Group, before handing over this position to Mr. Nguyen Dac Diem at the end of August 2021.

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