Novaland forced to buy back 864 billion VND bond lot before maturity

(NLDO) - Mr. Bui Cao Nhat Quan wants to sell more than 2.92 million Novaland shares. While the company is forced to buy back 1,000 billion VND of bonds before maturity.

Novaland Investment Group Joint Stock Company ( Novaland ) has just announced unusual information to the regulatory authorities and shareholders regarding the sale of shares by Mr. Bui Cao Nhat Quan, son of Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland.

Accordingly, between March 21st and April 18th, Mr. Bui Cao Nhat Quan, an insider, will sell 2.92 million NVL shares, reducing his ownership stake from 78.24 million (equivalent to 4.012%) to 76.31 million shares, representing 3.86%. The expected transaction value at par value is 28.23 billion VND.

The transaction method is either agreement or order matching. According to the published information, the reason for selling is due to personal needs.

At the same time, Novaland announced unusual information regarding the mandatory early repurchase of the NVLH2123010 bond issue worth nearly VND 1,000 billion. Accordingly, Novaland must complete the repurchase no later than March 17, 2025.

Novaland's apartment project in Ho Chi Minh City is nearing completion.

The NVLH2123010 bond issue was launched on September 17, 2021, with a 42-month term and an interest rate of 10.5% per annum. The total issuance value is VND 1,000 billion and will mature on March 17, 2025. These bonds were issued to both institutional and individual professional investors.

MB Securities Joint Stock Company (MBS), representing the bondholders, stated that Novaland must maintain a minimum collateral ratio of 100% of the total face value of outstanding bonds. If this ratio falls below the required level, the company must provide additional collateral within 30 days of notification, while other assets must be added within 10 working days. However, on January 10, 2025, the collateral ratio for this bond issue had fallen below 100%.

A few days earlier, Novaland announced that it had won its arbitration case regarding a project worth over 11,000 billion VND in Thu Duc City.

At the close of trading on March 17, NVL shares rose slightly by 500 VND per share, to 11,150 VND per share. Meanwhile, other real estate stocks saw significant increases.

Source: https://nld.com.vn/novaland-bi-buoc-mua-lai-truoc-han-lo-trai-phieu-864-ti-dong-196250317184642739.htm