On October 17, the Government Inspectorate publicly announced Inspection Conclusion No. 276/KL-TTCP on compliance with legal policies on the issuance of individual corporate bonds and the use of funds from individual corporate bonds.
The group of companies under Masan Group Joint Stock Company (JSC) includes 6 issuing organizations inspected including: СТССP Masan Group, Masan MeatLife Joint Stock Company, Wincommerce General Trading Service Joint Stock Company, Nui Phao Mineral Exploitation and Processing Company Limited, CТСР Masan High - Tech Materials, MasanConsumerHoldings Company Limited.
According to the report for the period January 1, 2015 - June 30, 2023, the group of companies under Masan Group Joint Stock Company has VND 64,573.990 billion in corporate bond value issued by 6 issuing organizations with the purpose of issuance to increase the scale of operating capital; and/or implement investment programs and projects; and/or restructure debts of issuing organizations.
Notably, the Inspection Conclusion shows that the results of the review of the use of funds from some corporate bonds show that 3/6 issuers do not comply with the regulations on the use of funds from corporate bonds, specifically:
Masan Consumer Holdings Company Limited used VND 1,294.783 billion out of VND 2,100 billion from the issuance of MCHBONDS 2014 code corporate bond (issue date: December 5, 2014) to pay principal and interest on some loan contracts, which was to restructure debts, not in accordance with the issuance purpose in the approved issuance plan.
Masan Group Joint Stock Company used VND 310.027 billion out of a total of VND 1,140 billion from 12 corporate bonds from MSNH2023020-MSNH2023031 ( promulgated in 2020) to pay interest debts of previously issued corporate bonds, which is essentially a structure of interest debts not in accordance with the purpose of use according to the corporate bond issuance plan, not properly implementing the responsibility of the issuing organization.
Wincommerce General Trading Services Joint Stock Company (WCM) used VND 891.477 billion out of VND 1,500 billion from the issuance of bond code VCMH2025031 (issue date: December 28, 2020) to increase capital; the remaining amount from corporate bond source of VND 608.515 billion was not used for the correct purpose according to the issuance plan.
Regarding information disclosure, the inspection showed that 4/6 issuing organizations ( Masan Consumer Holdings Co., Ltd., СТСР Masan High - Tech Materials, Nui Phao Mineral Exploitation and Processing Company Limited, Wincommerce General Trading Service Joint Stock Company) did not comply with regulations on the obligation to disclose information.
Regarding responsibilities, the Government Inspectorate determined that issuing organizations are responsible for not fully, strictly, and incorrectly implementing regulations on corporate bond issuance and related legal documents during the process of issuing corporate bonds and using capital from corporate bonds; not properly implementing regulations on the responsibility of issuing organizations in "managing and using capital from bond issuance in accordance with the bond issuance plan approved by competent authorities and in accordance with the provisions of law".
The Government Inspectorate requests issuing organizations to stop violations of corporate bond issuance and use of capital from corporate bonds that have been discovered through inspection; urgently review and overcome shortcomings, defects and consequences (if any).
