Tan Hoang Minh to sell developments, refund bond buyers

“We are selling them to refund investors as soon as possible,” Do Hoang Minh, acting chairman and CEO of the group, said Wednesday at a meeting with bond buyers.

Tan Hoang Minh has asked the State Securities Commission (SSC) and related authorities to process its paperwork faster and provide further instructions on the refund, its acting chairman added.

The group currently owns six apartment projects in Hanoi, three of them still under construction.

The group’s chairman Do Anh Dung and six other executives, including Dung’s younger son, were arrested last week for alleged fraud in nine bond issuances between July 2021 and March 2022 to raise more than VND10 trillion.

The State Securities Commission (SSC) has decided to cancel the issuances last Monday, citing submission of false information.

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

With a total value of VND10 trillion, or less than 1.5 percent of the corporate bond market, the damage caused by the alleged fraud was not too significant, according to a report by Vietcombank Securities said.

But real estate developers may find it more difficult to raise capital in the short-term, as investors will be more cautious in buying corporate bonds, it said.

Several experts have said that this incident was an opportunity to cleanse the market of junk bonds and ensure long-term development of the bond market.