Novaland (NVL) shares plunge amid corporate bond fraud investigation

Novaland (NVL) shares plunge amid corporate bond fraud investigation

Shares of Vietnamese property giant Novaland Group (HoSE: NVL) tumbled to the daily limit of a 7 per cent loss on Monday following news that the Government Inspectorate has transferred files on alleged bond-related violations at the company and its affiliates to the Ministry of Public Security for investigation.

Headquarters of Novaland Group in HCM City. Shares plunged to the daily limit Monday after inspectors referred alleged bond violations to police. — VNS Photo Bồ Xuân Hiệp

At the opening of the week’s trading session, NVL shares sank to the floor price of VNĐ15,450 (US$0.60) per share. By 10am, the price had slightly rebounded to VNĐ15,600, with an unusually high trading volume of over 45 million shares changing hands.

The sharp decline came after the Government Inspectorate last weekend announced findings from a years-long investigation into Việt Nam’s corporate bond market, covering 67 major issuers including banks and large conglomerates.

The report identified Novaland and related entities among the focal points of the probe, with “complex cases” now referred to police for further action.

According to the inspectorate’s conclusions, one serious violation involved creating fictitious transactions to withdraw money from bond proceeds. 

In one cited case, an individual received capital contributions from a Novaland subsidiary to invest in another firm, but the funds were largely transferred away the same day before being repurchased by Novaland using VNĐ1.5 trillion ($59 million) raised from bond sales. 

The cash then allegedly circulated through several intermediaries before returning to the original Novaland entity.

In a statement, Novaland said the findings relate to bond issuances between 2015 and mid-2023, with outstanding debt totalling VNĐ34.9 trillion as of June 30, 2023. 

The company said it had repaid or settled 44 per cent of that amount following financial restructuring efforts in 2024-2025, bringing total private bond debt down to VNĐ19.6 trillion by September 2025.

Novaland said it had fully or partially settled most of the 24 bond packages mentioned in the inspectorate’s report, adding that only one overdue issue (about 8.2 per cent of the original debt) remained under gradual repayment with bondholder consent.

“We have seriously reviewed the inspection’s conclusions and have taken steps to address each bond issue,” a Novaland representative said, adding that the group “remains committed to protecting investors’ rights and maintaining transparency” in cooperation with regulators.

The company also attributed earlier disclosure delays to COVID-19 disruptions and said all missing documents had since been corrected and supplemented in line with regulations.

Việt Nam’s corporate bond market has been under intense scrutiny since 2022, when a series of high-profile fraud cases, including the arrest of real estate tycoon Trương Mỹ Lan and the collapse of Vạn Thịnh Phát Group, sparked a crisis of confidence.

Authorities have since tightened oversight and launched nationwide inspections targeting improper bond issuance, misuse of proceeds, and disclosure violations, as policymakers seek to restore investor trust and stabilise the financial system. 

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