Sacombank (STB) Auctions Xi Grand Court Floors for VND 3,620B in Bamboo Airways Debt Recovery

Overview

Sacombank (HOSE: STB) is auctioning the rights to six commercial floors at the Xi Grand Court project on Lý Thường Kiệt street in Ho Chi Minh City, with a starting price of VND 3,620 billion. The sale is part of the bank’s debt recovery process tied to a loan extended to Bamboo Airways (Công ty CP Hàng không Tre Việt). The notice does not disclose the outstanding debt balance or auction results.

Key Facts

• Starting price for the auction of the property rights is VND 3,620 billion.
• The asset comprises the exploitation rights to six commercial floors, spanning 47,316 m² from floors 1 to 6.
• The package includes a cinema area of nearly 1,800 m² and garden spaces.
• The asset is located at the Xi Grand Court project on Lý Thường Kiệt street, Diên Hồng ward, Ho Chi Minh City.
• The rights arise from a contract between project developer Phú Sơn Thuận Investment Construction JSC and Saigon Impression Real Estate Company.
• Sacombank’s asset management unit, SBA, is selecting an auctioneer to handle the sale.
• In early April 2026, Sacombank reportedly moved to seize 355 land-use certificates in Đăk Đoa, Gia Lai province, covering more than 86,300 m², linked to FLC Group as guarantor for the Bamboo Airways loan.

What Happened

Sacombank’s wholly owned asset management and exploitation subsidiary, Công ty TNHH MTV Quản lý nợ và Khai thác tài sản Ngân hàng Sài Gòn Thương Tín (SBA), issued a notice seeking an auctioneer to dispose of collateral tied to a loan to Bamboo Airways. The collateral is the right to exploit six commercial floors at the Xi Grand Court project, a development on Lý Thường Kiệt street in Ho Chi Minh City. The rights stem from a contract between Phú Sơn Thuận, the project developer, and Saigon Impression Real Estate Company.

The starting price of VND 3,620 billion is an indicative reserve for the property rights and does not represent Bamboo Airways’ outstanding debt at the bank, according to the notice. The announcement follows an earlier report in early April 2026 that Sacombank planned to take over 355 land-use certificates in Đăk Đoa, Gia Lai province, covering more than 86,300 m², to resolve bad debt linked to Bamboo Airways, with those properties belonging to FLC Group as guarantor. The latest notice does not disclose the specific outstanding balance or the outcome of the auction.

Market Context

STB closed at VND 62,800 on 15 October 2026 on the Ho Chi Minh Stock Exchange (HOSE). The auction is the latest step in Sacombank’s multi-year effort to work through legacy bad debt tied to Bamboo Airways and FLC Group, a process that has weighed on the bank’s asset quality metrics and provisioning. Vietnamese banks have been accelerating collateral disposal as part of broader sector efforts to clean up balance sheets, with real estate assets in Ho Chi Minh City drawing particular attention given the market’s recovery trajectory.

Strategic Significance

For long-term investors, the key question is how much of the Bamboo Airways exposure Sacombank can recover and at what discount to book value. The VND 3,620 billion starting price provides a reference point, but the gap between the reserve and the actual debt balance remains undisclosed. Successful disposal would reduce the overhang of non-performing loans and free up provisioning capacity, while a failed or discounted auction would signal continued pressure on recovery values. The parallel Gia Lai land seizure suggests Sacombank is pursuing multiple collateral tracks simultaneously, which could accelerate resolution but also raises questions about the realisable value of the underlying assets.

What to Watch

• The identity of the selected auctioneer and the scheduled auction date.
• Disclosure of Bamboo Airways’ outstanding debt balance at Sacombank.
• Auction results and the final transaction price relative to the VND 3,620 billion reserve.
• Progress on the Gia Lai land-use certificate seizure and any related FLC Group developments.
• STB’s next quarterly earnings release for updates on bad debt provisioning and recovery rates.