Novaland doubles stock conversion price

Bondholders of the $300 million international bond lot had to spend VND77,000 to convert to one NVL share, up 93% from the previous level.

According to the newly announced resolution, No Va Real Estate Investment Group Joint Stock Company ( Novaland - NVL) has adjusted the restructuring plan for the international bond lot of 300 million USD. In which, the conversion price was raised to 77,000 VND per share, an increase of 92.5% compared to the level of 40,000 VND previously proposed in mid-December 2023.

Compared to the initial conversion price when issuing bonds - 135,700 VND, the new price is about 1.8 times lower. However, the above figure is still 4.7 times higher than the current market price of NVL - about 16,300 VND at the close of the session on January 19. Since reaching the restructuring agreement, Novaland shares have been almost flat around the 16,000-17,000 VND range, with no significant growth.

Previously, Novaland was granted a deferred interest payment by bondholders of the $298.6 million bond lot and agreed to convert it into NVL shares at a new price. This is a capital mobilization from 2021, without collateral, with an interest rate of 5.25% per year. Novaland said that the convertible bond transaction under the new agreement will reduce pressure on the company in the context of general difficulties and legal problems causing many challenges for the real estate market, affecting business operations and financial situation.

Recently, Novaland and the Novagroup ecosystem have focused on debt restructuring. They have actively negotiated to extend, change interest rates or swap debt for other assets, as well as seek to raise capital to fulfill financial obligations.

Mr. Bui Thanh Nhon's company also rearranged, prioritizing projects that are about to be completed to hand over products to customers and selected projects with high liquidity to speed up legal procedures to catch up with the recovery of the real estate market. At a meeting with the Prime Minister in mid-November 2023, CFO Duong Van Bac said that the group had passed the most difficult time and was 80% of the way to restructuring.

Currently, this investor has 4 main, large-scale project clusters in Ho Chi Minh City, Dong Nai, Ba Ria - Vung Tau and Binh Thuan.

Siddhartha

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