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

Overview

Sacombank’s debt management subsidiary, Sacombank-SBA, has opened an auction for collateral tied to Bamboo Airways’ outstanding loan, offering exploitation rights over six commercial floors at the Xi Grand Court project in Ho Chi Minh City. The starting price is VND 3,620 billion, equivalent to roughly USD 144.8 million. The move is the latest step in Sacombank’s effort to recover lending extended to Bamboo Airways and the wider FLC group since 2021.

Key Facts

• Sacombank-SBA announced the selection of an auction organizer on 12/10 for collateral linked to Bamboo Airways (Công ty cổ phần hàng không Tre Việt).
• Starting price for the auctioned asset: VND 3,620 billion (approximately USD 144.8 million).
• The collateral comprises exploitation rights over six commercial floors at Xi Grand Court, totaling 47,316 square meters from floors 1 through 6.
• The package includes a cinema area of nearly 1,800 square meters and landscaped garden spaces.
• The rights originate from a contract between Phú Sơn Thuận Construction Investment JSC (project developer) and Bất động sản Dấu Ấn Sài Gòn.
• Xi Grand Court is located at 256-258 Lý Thường Kiệt, Diên Hồng ward, Ho Chi Minh City, near the Lý Thường Kiệt station of metro line 5.
• In April, Sacombank also announced the seizure of more than 86,000 square meters of FLC land in Gia Lai tied to a 2021 Bamboo Airways loan.

What Happened

Sacombank’s wholly owned debt management and asset exploitation unit, Sacombank-SBA, issued a notice on 12/10 selecting an auction organization for the secured assets of Bamboo Airways. The underlying loan is secured by exploitation rights over six commercial floors at the Xi Grand Court development in Ho Chi Minh City. Those rights derive from a contract between Phú Sơn Thuận Construction Investment JSC, the project developer, and Bất động sản Dấu Ấn Sài Gòn.

The auctioned package covers 47,316 square meters across floors 1 to 6, including a cinema area of nearly 1,800 square meters and garden spaces. Sacombank set the starting price at VND 3,620 billion. The bank and Bamboo Airways have been comprehensive partners since 2021, and Sacombank is a major creditor to both the airline and FLC Group. The April seizure of more than 86,000 square meters of FLC land in Gia Lai was tied to the same 2021 Bamboo Airways loan.

Market Context

STB trades on HOSE and closed at VND 64,600 on 14/10. The auction is a credit-recovery action rather than an earnings event, and it sits within a broader Vietnamese banking-sector effort to work through legacy exposures to aviation and real-estate borrowers. Sacombank’s parallel recovery actions against Bamboo Airways and FLC assets indicate the bank is pursuing multiple collateral pools simultaneously rather than relying on a single disposal.

Strategic Significance

The Xi Grand Court asset is a commercial podium in a dense, established retail corridor near the Sài Gòn-Chợ Lớn business district and a future metro line 5 station, which gives it a clearer resale narrative than distressed industrial or undeveloped land. For STB, the key question is not whether the auction clears at the VND 3,620 billion reserve, but how much of the Bamboo Airways and FLC exposure can be recovered without further provisioning. A successful sale would reduce the overhang from one of the bank’s most visible legacy problem loans and free management attention toward core retail and SME lending.

What to Watch

• The identity of the winning bidder and the final clearing price relative to the VND 3,620 billion reserve.
• Whether the auction draws qualified bidders or is postponed for lack of participation.
• Further Sacombank-SBA notices covering other Bamboo Airways or FLC collateral, including the Gia Lai land.
• STB’s quarterly provisioning and non-performing loan disclosures for the Bamboo Airways exposure.
• Any restructuring or court process involving Bamboo Airways and FLC Group that could alter recovery timing.