Novaland is negotiating a debt restructuring for its $300 million international bond issue.

(NLĐO) - Novaland has received approval from its partner for a debt deferral plan for the $300 million international bond package until June 2027.

Novaland Investment Group Joint Stock Company (Novaland-NVL) has just announced the completion of negotiations with its partner regarding a $300 million bond issue to be listed and traded on the SGX exchange in Singapore, extending until June 2027 instead of being due on January 16, 2025.

Regarding the $300 million international convertible bond issue listed on the Singapore Stock Exchange (SGX), the restructuring plan for this international bond issue was agreed upon in July 2024, with payment due on the bond maturity date in June 2027 or through any future early redemption (if applicable).

Novaland's Aqua City project ( Dong Nai ) is under intensive construction.

However, amidst the challenging market conditions, Novaland's revenue has been significantly impacted, making it difficult to make payments to lenders as planned. Therefore, despite its best efforts, Novaland has been unable to secure sufficient funds to meet its interest payment obligations on January 16, 2025, with this bond issue.

Novaland has also proposed to bondholders an extension of interest payment terms to suit the current situation and Novaland's capabilities. In the spirit of openness and ensuring fair treatment for all investors, Novaland has been making efforts to implement various solutions to protect the rights of bondholders and is currently in negotiations with the bondholders of this international bond issue.

"In the final stage of the restructuring process, Novaland needs more time to recover. The company hopes to receive the understanding and support of bondholders to stabilize business operations and fulfill its obligations to bondholders as soon as possible," Novaland's statement affirmed.

Previously, Novaland also adjusted the price and conversion ratio of this $300 million bond package. From January 5, 2025, the new conversion price is VND 36,000 per share, based on the fixed exchange rate at the time of conversion of VND 24,960/USD, which is 10% lower than the initial conversion price of VND 40,000 per share. The new conversion ratio is 149,038 shares per bond.

After two years of aggressive restructuring, Novaland has achieved significant improvements. The company's financial situation is now positive, with total outstanding debt to lenders as of December 31, 2024, having decreased and a plan for resolving this issue, valued at nearly VND 29,700 billion compared to December 31, 2022.

According to Novaland, in 2024, many of its projects, despite having resolved important legal issues, did not meet the desired progress, affecting sales and product handover to customers. Consequently, cash flow from these projects did not meet targets, resulting in delayed payments to bondholders.

"Novaland is focusing all its resources on gradually overcoming obstacles and accelerating the completion of legal procedures at key projects. In particular, Aqua City has completed the 1/500 detailed planning and sales permits for subdivisions conforming to the new plan, expected in July 2025; NovaWorld Phan Thiet has finalized decisions on land use fee payments from April 2025… From there, we can quickly proceed with construction, handover, and sales collection activities, providing a solid foundation for fulfilling our obligations to all stakeholders," Novaland emphasized.

Source: https://nld.com.vn/novaland-dam-phan-gian-no-goi-trai-phieu-quoc-te-300-trieu-usd-196250117162346185.htm