Investor of Angel Island Development Project Acquires Over a Trillion VND in Pre-Mature Bonds.

On February 29, 2024, Sông Tiên Real Estate Development Joint Stock Company (Sông Tiên Corp) repurchased in advance the entire VND 1,060 billion of SONGTIEN2020 bonds. After the repurchase, the company no longer has any outstanding bonds.

According to the information from the Hanoi Stock Exchange (HNX), Sông Tiên Corp issued these bonds on March 12, 2020, with a term of 6 years until March 12, 2026. These non-convertible bonds, without warrants, are secured by assets, with an issuance interest rate of 11.9% per annum, payment of interest every 12 months at the end of each period, and the bond depository is Tien Phong Commercial Joint Stock Bank (TPBank, HOSE: TPB).

After the bond repurchase transaction, Sông Tiên Corp has 4 collateral transactions with LienVietPostBank (LPBank, HOSE: LPB). These transactions took effect on March 8, 2024, and are secured by legal interests and benefits related to the use and exploitation of the Nhơn Phước tourism urban area project (legally known as Ông Cồn islet) in Đại Phước commune, Nhơn Trạch district, Đồng Nai province, where the company is the investor.

According to research, the Nhơn Phước tourism urban area project, also known as Angel Island, includes 2,000 villas, townhouses, and an apartment building with about 1,700 units, with a total investment of about VND 20 trillion. The project is divided into 6 phases and will be completed in 2026. The Angel Island Experience Gallery is the first construction project to commence in this project.

The initial project was owned by Nhật Quang Trading Construction Co., Ltd., and by the end of 2004, the People’s Committee of Đồng Nai province issued a decision on land allocation. By the beginning of 2007, the project was approved for a 1/500 scale plan. In early 2019, this company merged into Sông Tiên Corp, and as a result, the right to develop this project also belonged to Sông Tiên Corp.

In October 2023, Đồng Nai province approved the extension of the deadline for Sông Tiên Corp to implement the construction of technical infrastructure for the Nhơn Phước tourism urban area project with an area of 204.7 hectares. The reason for the deadline extension is due to the impact of the COVID-19 pandemic on the project implementation process.

Recently, on February 22, 2024, the People’s Committee of Đồng Nai province issued a decision to revoke nearly 1.23 million square meters (about 123 hectares) of land used by Nhật Quang Trading Construction Co., Ltd. for the construction of technical infrastructure, greenery, water bodies, local stations, administrative headquarters, transportation, preschools, and primary and secondary schools, which are part of the Nhơn Phước tourism urban area construction project. The reason for the revocation is to implement land use regulations regarding the case of Nhật Quang Trading Construction Co., Ltd. merging into Sông Tiên Corp.

On the same day, the People’s Committee of Đồng Nai province also assigned the above-mentioned area to Sông Tiên Corp under the form of the State granting land without land rent, with the land transfer period following the project implementation progress. After completing the infrastructure works, Sông Tiên Corp is responsible for transferring the entire area to the local authorities for management and use in accordance with regulations.

Rendering of the Nhơn Phước tourism urban area project

Sông Tiên Corp was established in September 2018, with its main business activities in housing and real estate. The initial registered capital was VND 750 billion, with Mr. Nguyễn Tuấn Anh contributing 92%, Mr. Ngô Sỹ Quang 2.5%, and Ms. Ngô Thị Ái Linh 5.5%. Up to now, the company has increased its capital to VND 5,379 billion, with Ms. Dung as the Chairwoman of the Board of Directors, and Mr. Trương Văn Việt as the CEO and legal representative since October 2021. Previously, Mr. Tuấn Anh and Mr. Chow Chee Fan also held the position of CEO here.

In the first 6 months of 2023, Sông Tiên Corp incurred a loss of over VND 22 billion. As of the end of June 2023, the company’s total liabilities amounted to VND 4,895 billion, 1.09 times the equity, of which VND 943 billion was bond debt, equivalent to 0.21 times the equity.

Huy Khải