Novaland forced to buy back 864 billion VND bond lot before maturity

(NLDO) - Mr. Bui Cao Nhat Quan wants to sell more than 2.92 million Novaland shares. While the company is forced to buy back 1,000 billion VND of bonds before maturity.

No Va Real Estate Investment Group Corporation ( Novaland ) has just announced unusual information to the management agency and shareholders that Mr. Bui Cao Nhat Quan, son of Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland, has sold shares.

Accordingly, from March 21 to April 18, Mr. Bui Cao Nhat Quan, an insider, will sell 2.92 million NVL shares, reducing his ownership ratio from 78.24 million (equivalent to 4.012%) to 76.31 million shares, accounting for 3.86%. The expected transaction value at par value is VND 28.23 billion.

The transaction form is by agreement or order matching. According to the published information, the reason for selling is due to personal needs.

At the same time, Novaland announced unusual information about the mandatory early repurchase of the NVLH2123010 bond lot worth nearly VND1,000 billion. Accordingly, Novaland must complete the repurchase no later than March 17, 2025.

Novaland's apartment project in Ho Chi Minh City is nearly completed.

The NVLH2123010 bond lot was issued on September 17, 2021, with a term of 42 months and an interest rate of 10.5%/year. The total issuance value is VND 1,000 billion and will mature on March 17, 2025. This bond is issued to both institutional and professional individual investors.

MB Securities Joint Stock Company (MBS), the bondholder representative, said that Novaland must maintain a minimum collateral ratio of 100% of the total face value of outstanding bonds. If this ratio falls below the prescribed level, the company must add collateral within 30 days of the notice, and other assets must be added within 10 working days. However, on January 10, 2025, the collateral ratio of this bond lot fell below 100%.

A few days earlier, Novaland announced that it had won the arbitration court case on a project worth more than VND11,000 billion in Thu Duc City.

At the close of the March 17 stock trading session, NVL shares increased slightly by VND500/share to VND11,150/share. Meanwhile, other real estate stocks increased quite strongly.

Source: https://nld.com.vn/novaland-bi-buoc-mua-lai-truoc-han-lo-trai-phieu-864-ti-dong-196250317184642739.htm