CTCP Phát triển Bất động sản Nhật Quang (BĐS Nhật Quang) recently released its financial information for 2022, reporting a staggering loss of VND 5,573 billion. This is a drastic increase from the negative VND 267 billion reported in the same period last year. The heavy loss has resulted in the company having negative owner’s equity of nearly VND 3,959 billion (as of December 31, 2022).
The company’s bond debt currently stands at VND 2,150 billion. The collateral for this bond is the assets generated from the transfer contract of a portion of the assets belonging to The Spirit of Saigon project.
Regarding this bond, on January 23, 2024, BĐS Nhật Quang also announced a delay in the principal payment due to the issuing entity’s failure to arrange sufficient financial resources.
Similarly, Smart Dragon also reported a large loss of VND 3,749 billion in 2022. This loss caused the company’s owner’s equity to be negative VND 2,516 billion as of December 31, 2022. Currently, Smart Dragon has bond debt of VND 1,900 billion.
It is known that the collateral for this VND 1,900 billion bond consists of assets generated from the transfer contract of a portion of the assets belonging to The Spirit of Saigon project, assets related to a portion of the Spirit of Saigon project, and other additional/substitute assets owned by Smart Dragon.
Another investor in this “Golden Land” project, Saigon Glory, also faces a similar situation of “loss”. In 2022, Saigon Glory reported a loss of VND 152 billion and a bond debt of VND 10,000 billion – 1.5 times higher than the owner’s equity.
Recently, Saigon Glory announced that it has reached an agreement with the bondholders to extend the maturity of 10 bonds with a total value of VND 10,000 billion. According to the agreement dated February 5, the 10 bonds – with codes from SGL-2020.01 to SGL-2020.10, and each with a value of VND 1,000 billion – will have their maturity extended for 1-2 years.
During the extension period, Saigon Glory will repurchase the principal of each bond as soon as possible but no later than the progress schedule set at regular intervals, with the payment rate increasing gradually each period. For SGL-2020.01 to SGL-2020.05, the repurchase will be divided into 6 periods, while the remaining 5 bonds will be divided into 7 periods. In addition, all 10 bonds will apply an interest rate of 8% per year. The calculation period for interest will also be adjusted. Instead of every 3 months as before, it will be changed to every 12 months from the start of the extension.
The Spirit of Saigon project is located in the prime location of central Saigon with four frontages on Le Thi Hong Gam – Calmette – Pham Ngu Lao – Pho Duc Chinh streets. The project is built on an area of over 8,500 m2, including two towers with 55 and 48 floors respectively, a 7-story podium, and an underground floor connected to the Ben Thanh – Suoi Tien metro station.
