Novaland continues to face delays in bond payments

Novaland continues to face delays in bond payments

The payment was originally due on May 18, but the company has only managed to disburse approximately VNĐ6.8 billion to date.

Investors learn about a Novaland project. Photo laodong.vn

Novaland Group, a major player in Việt Nam's real estate market, has announced a significant delay in the repayment of over VNĐ645.1 billion (nearly US$25 million) in principal for its bond issuance, specifically for the NVLH2123014 bond series. 

The payment was originally due on May 18, but the company has only managed to disburse approximately VNĐ6.8 billion to date.

The company attributed the delay to its inability to secure necessary funds, which has hindered its capacity to fulfil its debt obligations.

Novaland is currently in negotiations with investors regarding the deferred payments for this bond series, which consists of 10 million bonds, each with a face value of VNĐ100,000, totalling an issuance value of VNĐ1 trillion. 

These bonds were issued on November 18, 2021, with an 18-month maturity, set to mature on May 18, 2023.

This is not the first instance of delayed payments from Novaland. 

On April 22, the company reported that it had paid only VNĐ622.1 million out of nearly VNĐ114.7 billion due for another bond series, NVLH2123007. 

With similar circumstances, the NVLH2123007 bond was issued on July 23, 2021, and was expected to mature on July 23, 2023.

The property developer has also disclosed intentions from major shareholders to divest shares. 

NovaGroup, a significant shareholder, has registered to sell over 3.9 million shares of Novaland to rebalance its investment portfolio and support debt restructuring. Should this transaction proceed successfully, NovaGroup's ownership will decrease from approximately 17.37 per cent to 17.17 per cent.

Similarly, another key shareholder, Diamond Properties, plans to sell more than 3.2 million shares for comparable reasons, while family members of the company's chairman, Bùi Thanh Nhơn, have also registered to liquidate nearly 11.6 million shares. 

Bizhub