Novaland buys back over 6,600 billion VND in bonds ahead of schedule

Up to now, Novaland has completed the early repurchase of 20 NVL2020 bond packages, with a total value of VND 6,660 billion.

On February 4, 2025, Novaland announced the completion of the early buyback of 15 bond packages issued from 2020 (NVL2020 bonds) with a total value of VND 5,110 billion.

Previously, on January 6, 2025, Novaland completed the early repurchase of 5 NVL2020 bond packages with a total value of VND 1,550 billion.

Novaland said it is arranging financial resources to complete the purchase of the remaining bond package as soon as possible.

It is known that these are 21 bond packages issued since 2020, with a term of 60 months (bond term extension has been approved), in which a part of these bonds are also overdue for interest payments and the entire principal and interest will be due in the period of June - August 2025.

On December 27, 2024, Novaland's Board of Directors approved the plan to buy back bonds before maturity for all 21 of these bond packages, with the total expected bond volume to be bought back at a maximum of VND 7,000 billion at par value.

In an effort to restructure to reduce debt and interest pressure, Novaland has discussed and reached consensus with bondholders of NVL2020 bonds to sell collateral through appropriate methods to pay principal and interest on bonds.

On that basis, the Group has found a partner to transfer assets and pay debts to bondholders, according to the implementation plan from January 2025.

After more than 24 months of comprehensive restructuring, Novaland has basically achieved many positive results. Step by step, Novaland is gradually recovering and has increasingly clear changes in business activities.

Novaland's financial situation is currently recording many positive changes, basically completing the restructuring of most of its loans and bond debts.

As of December 31, 2024, Novaland's total outstanding debt to lenders has decreased or has been resolved with a value of nearly VND 29,700 billion compared to December 31, 2022. Many loan packages from banking partners and foreign loans have also completed restructuring, which helps Novaland reduce financial pressure in the short term.

Novaland's financial statements recorded the independent auditor's opinion on the Group's going concern assumption, showing the difficulties the unit is facing.

Accordingly, flexible rotation to create enough cash flow to finance the group's operations becomes increasingly important. Novaland said that the company has resolutely restructured principal and interest debts when they are due, and has made efforts to negotiate to receive additional credit from major banks such as MB, VPBank , TPBank, MSB... with a total funding limit of VND 18,200 billion and is disbursing on schedule, ensuring capital flow to implement key projects.

Novaland's main solutions are to handle collateral to repay debt, pay debt with assets according to regulations, and extend the principal and interest payment period of loans...

Specifically, in September 2023, the Group completed the debt-to-equity conversion in a subdivision of the Aqua City project; in July 2024, reached an agreement to restructure the USD 300 million international convertible bond package listed on the Singapore Stock Exchange; outstanding bonds issued individually reduced by 16%; exchanged and reached consensus with bondholders of 21 bond lots issued since 2020, on that basis, Novaland found a partner to transfer assets and pay debts to bondholders as planned from January 2025, with a total value of VND 7,000 billion; extended more than VND 4,000 billion of retail bonds and bonds issued to the public.

At the same time, from 2023 to present, many suppliers, contractors, lenders and bondholders of Novaland have chosen to swap with real estate products, as one of the solutions for restructuring.

With key projects, Novaland also achieved remarkable results in terms of legality and project progress.

Recently, on January 23, 2025, the People's Committee of Dong Nai province officially approved the cost of local adjustment of the 1/5,000 planning of subdivision C4. This is a positive step towards completing the adjustment of the 1/5,000 planning of subdivision C4 expected in the first quarter of 2025, from which it is expected that by July 2025, Aqua City will complete the detailed planning of 1/500 and sales licenses for subdivisions in accordance with the new planning.

In November 2024, NovaWorld Phan Thiet was "untied" when the People's Committee of Binh Thuan province issued a decision to adjust the decision to lease the project's land, as a basis for resolving land financial obligations in this project. It is expected that NovaWorld Phan Thiet will complete the decisions to pay land use fees from April 2025.

At the same time, the activities of handing over houses to customers and granting pink books to residents are continuously promoted, helping to increase cash flow from project handover.

In 2024, Novaland delivered 1,422 products from 7 projects, including: Aqua City (accounting for more than 1/4 of total delivered products), NovaWorld Phan Thiet, NovaWorld Ho Tram, Sunrise Riverside, Lakeview City, Palm City, Saigon Royal. The total number of Novaland delivered products in 2024 increased by more than 153% compared to 2023 and was almost equivalent to the number of products delivered in 2022, the time before restructuring.

The handing over of pink books to residents has also been accelerated with nearly 400 books from the Sunrise Riverside and Victoria Village projects (low-rise areas) in 2024. In 2025, Novaland plans to hand over pink books to more than 7,000 products in central urban real estate projects in Ho Chi Minh City.

Source: https://baodautu.vn/novaland-mua-lai-trai-phieu-truoc-han-hon-6600-ty-dong-d244245.html