Novaland issues debt swap shares, strengthens corporate finance

(NLDO)- More than 168 million shares will be issued at a price of VND15,746/share.

No Va Real Estate Group Corporation ( Novaland - stock code: NVL) has just announced a proposal to ask shareholders for opinions on two major financial plans: issuing more than 168 million individual shares to convert debt and borrowing up to 5,000 billion VND with the right to convert into shares.

A project of Novaland in Phan Thiet, Lam Dong

According to the plan, more than 168 million shares will be issued at VND15,746/share to exchange a total debt value of more than VND2,645 billion. The three creditors identified to participate in the exchange are NovaGroup, Diamond Properties and Ms. Hoang Thu Chau. These creditors are all related to Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland. It is expected that after the issuance, the group of shareholders related to Mr. Bui Thanh Nhon will increase their ownership ratio to more than 42%.

The privately issued shares will be restricted from transfer within 1 year. After the issuance, Novaland's charter capital will increase to more than VND21,181 billion.

At the same time, Novaland also submitted to shareholders for approval a loan plan of up to VND5,000 billion, with a term of 5 years. This loan has the right to be converted into common shares after 12 months, with a conversion price not lower than 115% of the closing price of NVL shares at the time closest to the final disbursement date.

This is an important financial restructuring move of the enterprise in the context of the difficult real estate market.

It is expected that the implementation of both options will take place from the fourth quarter of 2025 to the first quarter of 2026, after being approved at the extraordinary General Meeting of Shareholders on August 7.

At the end of the session on August 5, NVL shares decreased slightly to 18,000 VND/share.

Source: https://nld.com.vn/novaland-xin-y-kien-co-dong-phat-hanh-168-trieu-co-phieu-rieng-le-de-hoan-doi-khoan-no-2600-ti-196250805150719559.htm