Companies buy back bonds prematurely after Tan Hoang Minh arrests

Created 27 July 2022
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Companies prematurely redeemed bonds worth VND49.1 trillion ($2.1 billion) in the second quarter, nearly four times the first quarter figure, spooked by the arrests of business executives for alleged issuance-related fraud.
Companies buy back bonds prematurely after Tan Hoang Minh arrests

The redemptions added up to VND61.9 trillion in the first six months, according to the Ministry of Finance.

Do Anh Dung, chairman of property company Tan Hoang Minh, and six others were for "alleged fraudulent appropriation of assets" through improprieties in bond issuances.

Authorities also worth more than VND10 trillion (US$437 million) between July 2021 and March 2022.

Since then a number of big companies have bought back or announced plans to buy back their bonds even before maturity date.

Electric equipment manufacturer Gelex redeemed bonds worth VND1.4 trillion, some of them only issued five months earlier.

Retail chain Intimex Vietnam shelled out VND2 trillion for redemption, and HCMC Infrastructure Investment (CII) plans to buy back VND2.8 trillion worth of bonds from now through February.

Analysts at brokerage SSI Securities Corporation said the revocation of Tan Hoang Minh’s bonds has made both issuers and investors more cautious.

The Ministry of Finance advises retail investors to be careful about buying privately placed bonds.

Source: VNE

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