Novaland wants to issue 168 million shares to convert debt and borrow an additional 5,000 billion VND

Novaland has just announced a proposal on the plan to issue more than 168 million individual shares to exchange for a total debt value of more than VND 2,645 billion, and a plan to implement a loan with the right to convert into shares with a maximum limit of VND 5,000 billion.

Novaland is preparing to ask shareholders for their opinions on the plan to issue individual shares to convert debt and implement a convertible loan. In the photo: a corner of Novaland's Aqua City urban area - Photo: NGOC HIEN

On August 5, Novaland Group (stock code: NVL) announced two proposals to seek shareholders' opinions at the extraordinary general meeting of shareholders on August 7.

In which, the first proposal is the plan to issue more than 168 million individual shares to exchange for a total debt value of more than VND 2,645 billion.

After the congress approves the plan to issue shares to convert debt, Novaland will submit it to the State Securities Commission for consideration and approval to carry out the necessary procedures, in accordance with the provisions of law, to implement the issuance plan. The expected implementation time is from the fourth quarter of 2025 to the first quarter of 2026.

This issuance plan aims to restructure debts and improve financial situation. It is expected that after issuance, Novaland's charter capital will reach more than VND 21,181 billion.

Specifically, the number of shares expected to be issued to convert debt is 168,014,696 shares with an issuance price of VND 15,747/share. Accordingly, the debt value of VND 15,747 will be converted into 1 newly issued common stock.

The above swap price is determined based on the average closing price of the last 30 trading days of NVL shares at the Ho Chi Minh City Stock Exchange from June 19 to July 30, 2025. The ratio of the number of shares issued to the total number of outstanding shares is 8.616%.

The identification of 3 creditors for the swap, NovaGroup, Diamond Properties and Ms. Hoang Thu Chau, is based on the list of creditors related to item V.19 - payable from the sale of mortgaged shares of the guarantors as of December 31, 2024, presented in the company's audited separate financial statements for 2024, and the above creditors have reached an agreement in principle on debt swap with Novaland.

This is the amount that NVL must pay to the parties that have mortgaged shares for secured loans so that the company can fulfill its payment obligations. During the most difficult period of Novaland, these shareholders have committed to accompany and support NVL so that it can pay its debts when due and maintain continuous operations.

As of December 31, 2024, the outstanding debt of NovaGroup, Diamond Properties and Ms. Hoang Thu Chau is approximately VND 2,527 billion, nearly VND 112 billion and nearly VND 7 billion, respectively. Accordingly, the expected number of shares of NovaGroup, Diamond Properties and Ms. Chau that NVL will use to convert debt is approximately 160 million shares, nearly 7.1 million shares and 424 thousand shares, respectively.

Thus, it is expected that after the issuance, the total ownership ratio of the major shareholder group (NovaGroup and Diamond Properties) and the family shareholder group of Mr. Bui Thanh Nhon (Chairman of Novaland) will reach 42.428%.

Novaland said that the temporary issuance of additional shares will dilute current shareholders, however, Novaland and major shareholders are making efforts to achieve the proposed business plan and recovery goals... to ensure the interests of shareholders and all related parties.

Novaland borrows up to 5,000 billion VND

At the upcoming extraordinary general meeting, Novaland also presented a plan to implement a convertible loan with a maximum limit of VND 5,000 billion, a term of 5 years from the date of disbursement, payable upon maturity.

The lender has the right to request the conversion of part or all of the principal balance of the loan into common shares of the Company.

Novaland representative said that with pressure from many sides, especially when cash flow is still difficult, the first half of 2025 still lost hundreds of billions of VND, Novaland still does not have the ability to fully pay off the outstanding debts from 2022 to present.

The group said it is still looking for new restructuring options for these debts to handle them from late 2026 to early 2027.

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NGOC HIEN

Source: https://tuoitre.vn/novaland-muon-phat-hanh-168-trieu-co-phieu-de-hoan-doi-no-va-vay-them-5-000-ti-dong-20250805171141007.htm