Bright door from bank loan of 3,600 billion VND of Novaland subsidiary

On November 28, Dalat Valley Real Estate Company Limited announced information on amending and supplementing the terms and conditions of DALATVALLEY2019-03 bonds. This real estate company has a charter capital of VND 2,754 billion and is a member of No Va Real Estate Investment Group Joint Stock Company (Novaland - stock code: NVL).

Previously, on November 3, the company asked for opinions from bondholders regarding collateral.

Issue 1 is to amend the collateral of this bond lot. Specifically, the enterprise wants to withdraw and release part of the collateral, which are land plots under 21 Certificates of land use rights, house ownership rights and assets attached to land.

In the event that the withdrawal of assets results in the collateral ratio for the bond not meeting the minimum ratio that Dalat Valley must maintain, the bondholder agrees not to declare an event of default related to the breach of the commitment to maintain the collateral ratio throughout the remaining term of the bond and not to require the enterprise and/or other guarantors to provide additional collateral for the bond.

Cửa sáng từ việc vay được ngân hàng 3.600 tỷ đồng của công ty con Novaland - 1 — Aqua Waterfront City project of Da Lat Valley (Photo: IT).

Issue 2 on the sharing of collateral. According to the mortgage contracts, the collateral of the bonds includes land use rights in Dong Nai province and property rights arising from the contract of transferring part of the Waterfront Dona urban area project, which are being used to secure the bond obligations and other credits of Dalat Valley at Vietnam Prosperity Joint Stock Commercial Bank (VPBank) under the loan contracts.

Currently, Da Lat Valley and VPBank are negotiating and appraising for VPBank to grant a maximum credit limit of 3,600 billion VND to Da Lat Valley.

Accordingly, the enterprise requests the bondholders' consent to use the collateral to continue to secure the expected credit (sharing the collateral).

The order of priority for payment of secured obligations when VPBank handles secured assets includes: First, payment of all bond obligations of Dalat Valley according to the terms and conditions of the bond and related bond documents. Second, payment of other credit obligations according to loan contracts.

On November 15, VPS Securities Joint Stock Company announced the Resolution of bondholders with the content of approving the amendment and sharing of collateral assets issued by Dalat Valley Real Estate Company Limited on December 11, 2019, due on December 11, 2023 with a total issuance value of VND 1,100 billion.

Cửa sáng từ việc vay được ngân hàng 3.600 tỷ đồng của công ty con Novaland - 2 — Resolution of bondholders approving Dalat Valley's opinion (Screenshot).

Regarding the above-mentioned VND3,600 billion credit facility, on November 24, Novaland approved the use of the entire VND2,000 billion capital contribution (equivalent to 72.62% ownership ratio) at Da Lat Valley to secure the obligation for this loan.

Also on November 18, Novaland announced unusual information about the payment of principal and interest of bond code NVLH2123011. Specifically, this bond lot has a total issuance volume of 1,000 billion VND, issued on September 1, 2021, and matures on September 1, 2023. The bond has a face value of 100,000 VND, is a non-convertible bond, without warrants or collateral.

After using real estate to pay 6.6 billion VND on November 24, the remaining debt of the bond lot is 936.2 billion VND. Up to now, this bond lot has been overdue for nearly 3 months.

Information on the results of the private bond offering shows that this bond lot is a non-convertible bond, without warrants, with collateral. The interest rate is 10.5%/year, with a 6-month term and interest paid once. The amount raised was used by Novaland to invest in the development of the Cu Lao Phuoc Hung urban area project in Dong Nai. All bondholders of the above bond lot are domestic investors.

In mid-November, Novaland also said it had paid VND18.6 billion for the NVLH2123009 bond lot. The source of payment is the property rights arising from receivables.

Source