Home collateral Banks deny involvement in Tân Hoàng Minh bond issue scandal

Banks deny involvement in Tân Hoàng Minh bond issue scandal


VIETNAM, April 8 – Barrier in front of a project of the Tân Hoàng Minh group in Yên Phụ, Tây Hồ district, Hà Nội. Photo vietstock.vn

HÀ NỘI — Vietinbank and Saigon Hanoi Commercial Joint Stock Bank (SHB) said they do not provide security and payment guarantee services, invest or distribute bonds issued by Tân Hoàng Minh Group .

On Wednesday, Vietinbank released an announcement regarding nine corporate bond issues of Tân Hoàng Minh Group that were recently canceled by Việt Nam’s State Security Commission (SSC).

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

Vietinbank provides account and asset management services for the bond issues 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 6.53 trillion from VNĐ ($285.6 million).

The provision of services is carried out on the basis of the Law on Credit Institutions of 2010 and the Business License No. 142/GP-NHNN of July 3, 2009 issued to Vietinbank by the State Bank of Việt Nam ( SBV), by which Vietinbank is authorized 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 the bonds under the bond account management and holding contract and in accordance with the law .

For asset management services, Vietinbank is solely responsible for collateral management, collateral status verification and monitoring, and dealing with investors with collateralized bonds under the collateral management contract. guarantees and in accordance with the law.

Also on Wednesday, SHB said it only provides account management and collateral services for the bond issues of Soleil and Viet Star, each worth 800 billion VNĐ. The services provided comply with the law.

The bank asserted that SHB does not provide securities underwriting and payment guarantee services, and does not invest in or distribute bonds of these two issues.

It undertakes to assume all its responsibilities in the provision of account and collateral management services for these issues.

In the meantime, SBV has just sent an official dispatch to credit institutions and branches of foreign banks asking to strictly implement certain measures to guarantee the security of operations, including the control of credit extension offers in certain industries at risk.

Accordingly, the state bank requests credit institutions to strengthen control of credit growth in accordance with the objectives assigned by the SBV in 2022, and in accordance with the guidelines of monetary and credit policy, and government banking activities. and the state bank.

For industries with potential risks or affected by the COVID-19 pandemic, the SBV requires credit institutions to strictly monitor the increase in outstanding credit and credit quality. This includes strengthening the monitoring of credit extension offers for customers borrowing capital to participate in land auctions to ensure compliance with the provisions of the law, and promptly reporting to SBV any signs of violation of the law. .

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