Novaland wants to exempt $300 million in international bond payments

Novaland (NVL) said it needs the approval of at least 66% of bondholders to waive payments related to the 300 million USD bond batch. The time limit for consulting bondholders on payment exemption is until June 4 (London time, England). In case the approval rate has not been reached, the consultation process can be extended for up to 5 additional working days.

According to NVL’s proposal, part of the debt obligations for the 300 million USD international bond batch will be written off if the bondholder ratio is reached through the restructuring plan. The enterprise recommends that bondholders consult with financial experts (including tax implications), as well as from stock brokers, bank managers, lawyers… before deciding.

Novaland will issue a batch of 300 million USD international bonds from 2021. Currently, this batch of bonds is listed on the Singapore Stock Exchange (SGX). The maturity date of this batch of bonds is 2027 with an interest rate of 5.25% per year. The capital collected is used by NVL to supplement investment and business activities.

During the annual meeting at the end of April, shareholders approved a restructuring plan, including extending interest payments and extending the term for another 1 year with this batch of international bonds.

In early April, Novaland said that BNP Paribas Financial Markets (France) had converted 15 bonds into company shares. With a total value of nearly 3.38 million USD, bondholders received nearly 2.48 million NVL shares. The conversion price is 34,000 VND, more than double the market price of this stock at that time.

By the end of 2025, 4 foreign investors converted a total of 133 bonds into nearly 20.8 million NVL shares.

During a press meeting in mid-April, a Novaland representative said that the company’s debt structure is gradually changing in the direction of reducing short-term financial pressure. This business is confident that it has overcome the “survival” period to return to the growth race in the real estate industry. In the coming time, they will focus resources to fulfill commitments to customers, investors, bondholders and shareholders.

Converting bonds into shares is one of the restructuring options proposed recently. However, according to NVL representative, the proposed price is much higher than the market price at the time of negotiation and this makes the plan less attractive to bondholders.

This year, the company plans to achieve a record revenue of 22,715 billion VND and profit after tax of 1,852 billion VND, down 0.5% due to the impact of high loan interest rates. The main driver is expected to be the business handing over more than 2,600 products, more than 4,300 pink books being issued for projects in the center of Ho Chi Minh City, and continuing to sell 2,100 units to the market.