Novaland proposes extension for $50 million bond payment

Novaland proposes extension for $50 million bond payment

The proposal comes as the company attempts to navigate financial challenges amid a significant downturn in revenue.

Novaland's apartment projects. — Photo nld.com.vn

Novaland on June 9 announced its intention to seek approval from bondholders to extend the payment deadline for its bond issuance NVLB2123012, valued at VNĐ1.3 trillion (US$50 million). 

The proposal comes as the company attempts to navigate financial challenges amid a significant downturn in revenue.

The NVLB2123012 bond, which was initially issued in 2022 and listed on the Hanoi Stock Exchange (HNX), has a face value of VNĐ100,000 per bond. 

The company is now preparing to engage with bondholders to discuss necessary amendments to the bond documentation and to adjust the maturity date, which was previously extended from July 20, 2023, to July 20, 2025.

This request for a second extension is particularly pressing, given that Novaland's revenue has sharply declined. 

In the first quarter of 2025, the property developer reported gross revenues of nearly VNĐ1.8 trillion, a significant drop from VNĐ4.8 trillion in the fourth quarter of 2024. 

This decrease has resulted in a net loss of over VNĐ443 billion, prompting the necessity for restructuring.

The company plans to gather bondholders' opinions from June to July this year through written surveys or electronic voting, with each bondholder having a voting weight of 1:1. 

A minimum of 66 per cent approval from the total outstanding bond value is required for the proposed changes to take effect. If the necessary consensus is not reached by the June 12 deadline, Novaland reserves the right to extend the voting period by an additional five working days, but only once.

The company is also seeking approval from bondholders regarding a restructuring plan for a separate convertible bond issuance valued at $320.9 million, which has a lower interest rate of 5.25 per cent and is listed on the Singapore Stock Exchange, with a maturity date set for 2027. 

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