According to the agreement on 05/02/2024, 10 bond lots with the codes SGL-2020.01 to SGL-2020.10 will be extended. Each lot has a value of 1 trillion VND. The maturity period of all 10 lots will be extended from 1 year to 2 years.
Firstly, for the three bond lots from SGL-2020.01 to SGL-2020.03, with the maturity date in June 2023, it will be extended to June 2025. The two lots SGL-2020.04 and SGL-2020.05, with the maturity date moved from July 2023 to July 2025. For the remaining 5 lots from SGL-2020.06 to SGL-2020.10, with the maturity date in August 2025, it will be extended to November 2026, adding 15 months.
During the extension period, Saigon Glory will repurchase the principal of each lot as soon as possible, but not later than the scheduled progress, with an increasing repayment rate per period. For the 5 lots from 01-05, the principal repurchase will be divided into 6 periods, while the 5 lots from 06-10 will be divided into 7 periods.
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The repurchase schedule of SGL-2020.01 bond lot during the extension period
Source: HNX
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The repurchase schedule of SGL-2020.10 bond lot during the extension period
Source: HNX
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The first payment cutoff date is the resolution date of the extension of the 10 bond lots, which is 05/02/2024. For the remaining payment periods, the cutoff date will be the third working day before the repurchase date.
Saigon Glory also notes that it will not send a notice to repurchase the principal to bondholders. On the other hand, bondholders do not need to take any additional legal procedures to have their bond principal repurchased.
During the extension period, all 10 bond lots will apply an interest rate of 8% per year. The interest calculation period will also be adjusted, from every 3 months before the extension period to every 12 months from the start date of the extension.
In October 2022, after the incident involving Van Thinh Phat, Mr. Vu Quang Bao – Chairman of the Board of Directors of Saigon Glory and Ms. Bui Thi Thanh Hien – Deputy General Director of TVSI signed a confirmation that Saigon Glory will repurchase the entire 100 million bonds before maturity, with a total face value of 10 trillion VND in 2 stages.
Specifically, for bond lots with sequential codes from SGL-2020.01 to SGL-2020.05, Saigon Glory commits to repurchase before maturity but not later than 12/06/2023. For bond lots with sequential codes from SGL-2020.06 to SGL-2020.10, Saigon Glory commits to repurchase before maturity as soon as possible, but not later than 12/06/2024. At the same time, the company commits to fulfill all related obligations and make full and timely payments of principal and interest for all the mentioned bond lots.
However, in reality, in 2023, Saigon Glory did not repurchase any bond lots before maturity and continuously had meetings with bondholders to adjust the bond maturity dates. In 2022, the company paid over 1,110 billion VND and in the first 6 months of 2023, it paid over 586 billion VND in bond interest.
In addition, the collateral for the bonds is the super project “The Spirit of Saigon” located in the prime area in front of Ben Thanh Market, which has been delayed for many years. Some real estate valuation companies have lowered the value of this project by over 10 trillion VND, from 17 trillion VND to over 6.7 trillion VND. The reason is that the nearly 10 trillion VND of receivables from Saigon Glory with some related legal entities are being investigated, so the valuation company doubts the recovery potential.
Saigon Glory, a subsidiary of Bitexco, reported a post-tax loss of over 152 billion VND in 2022.
Another Bitexco-related company continues to seek debt rescheduling for bonds.
The billion-dollar projects confiscated from Bitexco.
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