Novaland completes early redemption of 21 bond packages

Novaland completes early redemption of 21 bond packages

Novaland has been actively engaging in dialogues with creditors and bondholders, having already established initial restructuring agreements related to debts totalling nearly VNĐ18 trillion.

A construction site of Novaland's project. — Photo cafef.vn

Novaland announced the successful early redemption of 21 bond packages, identified under the code NVL2020, totalling VNĐ7 trillion (US$272 million). 

On April 9, the property developer said that it had completed the early redemption of the bond package NVL2020-03-340, with a total buyback value of VNĐ340 billion.

This particular bond package was issued in 2020 and is part of a larger set comprising 21 bond packages identified by the codes NVL2020-01, NVL2020-02 and NVL2020-03. The issuance was facilitated by VPS Securities Company, and the buyback plan received approval from Novaland's Board of Directors in December 2024.

Earlier, on January 6, the company reported completing the early redemption of five NVL2020 bond packages, totalling VNĐ1.55 trillion. 

Following this, on February 4, the company proceeded to finalise the early redemption of an additional 15 bond packages, amounting to VNĐ5.11 trillion.

Novaland has been actively engaging in dialogues with creditors and bondholders, having already established initial restructuring agreements related to debts totalling nearly VNĐ18 trillion. This proactive stance is vital as Novaland navigates the complex landscape of legal and operational challenges associated with its real estate projects.

The company's ambitious plan for 2025 demonstrates a cautious yet optimistic outlook, with projections based on two scenarios that consider potential legal resolutions in key projects. 

Novaland estimates that, under the best-case scenario, it could achieve revenues of over VNĐ13.4 trillion, while a more conservative estimate places revenue at more than VNĐ10.45 trillion. However, in both scenarios, Novaland anticipates experiencing net losses after tax of VNĐ12 billion and VNĐ688 billion, respectively. 

For its restructuring goals, Novaland has embarked on a process to divest assets, aiming for a total liquidation value of VNĐ26.54 trillion. 

So far, it has successfully sold two assets, generating nearly VNĐ8.1 trillion, while agreements for an additional seven properties worth VNĐ7.43 trillion are in place. 

Furthermore, the company is negotiating the sale of five additional assets valued at VNĐ6.68 trillion and has received non-binding offers for three properties amounting to VNĐ2.6 trillion.

As Novaland strives to overcome legal barriers and streamline its operations, the company continues to work closely with Government bodies to resolve project-related issues. There is a hopeful expectation for legal milestones to be achieved this year, allowing for improved sales performance in the subsequent 12 months. 

In its forthcoming General Meeting of Shareholders, the company will see the presentation of a proposal to issue up to 350 million new shares to approximately 20 professional investors, intending to raise necessary capital for debt repayment, operational costs and investments in subsidiary companies. 

Bizhub