Saigon Glory Financial difficulties, debt exceeds 3.99 times equity

DNHN - Saigon Glory's financial situation was severely impacted by its liabilities, which amounted to VND 27,320 billion, or more than 3.99 times its equity.

Saigon Glory Co., Ltd. is confronted with formidable difficulties in terms of financial management, as its liabilities vastly outweigh its holding capacity. According to the financial statement for 2022, Saigon Glory's net loss has risen to an alarming level, estimated at VND 152 billion. This is even though the company recorded a significant profit of VND290 billion after taxes in 2021.

Notably, Saigon Glory's financial situation was severely impacted by its liabilities, which amounted to VND 27,320 billion, or more than 3.99 times its equity. Outstanding bonds accounted for 9,98 billion VND, or 1.46 times as much as equity. This caused the return on equity (ROE) of Saigon Glory to plummet to a negative 2.22% from a positive 4.15% in the prior period.

In 2022, Saigon Glory was required to make forty bond interest payments on ten distinct bond lots. The total amount paid in each installment exceeded VND 27.7 billion, totaling nearly VND 1,110 billion in bond interest paid. However, the scandal surrounding the bonds of other companies has created risks for Saigon Glory, requiring the company to commit to buying back 10 trillion dongs of bonds in advance and in two phases.

To ensure payment and fulfill related obligations, Saigon Glory has committed to completing all bonds and paying principal and interest in full for the above bond packages. In the first year, the interest rate on these bond packages is 11%; thereafter, the rate is calculated based on a total of 4.5% plus the reference interest rate of the interest period. Techcombank manages the bond packages' assets, while Tan Viet Securities (TVSI) serves as the issuance consultant, depository agent, payment agent, and owner's representative.

Incorporated in 2018, Saigon Glory is a limited liability company with a charter capital of VND 7,000 billion and is a member of Bitexco Group. The company specializes in project management and development, with the most common projects being office - commerce - service - flat - 6-star hotel and hotel office quadrangle. Ben Thanh (also known as The Spirit of Saigon) is located in District 1 of Ho Chi Minh City.

Saigon Glory remains committed to overcoming obstacles and meeting its financial obligations while continuing to develop the project for future success despite experiencing financial difficulties.

P.V (t/h)