Novaland (NVL) announced it requires approval from at least 66% of bondholders to waive payments related to the 300 million USD bond tranche. The deadline for bondholders to provide their input on the payment waiver is June 4 (London time). Should the approval rate not be met, the consultation period may be extended by up to five business days.

According to NVL's proposal, a portion of the debt obligations for the 300 million USD international bond tranche would be canceled if the restructuring plan is approved by the required percentage of bondholders. The company advises bondholders to consult financial experts (including tax implications), as well as stockbrokers, bank managers, and lawyers before making a decision.

Novaland issued the 300 million USD international bond tranche in 2021. Currently, this bond tranche is listed on the Singapore Exchange (SGX). The bonds mature in 2027 and carry an interest rate of 5,25% per year. The capital raised was used by NVL to supplement its investment and business operations.

At the annual general meeting in late April, shareholders approved a restructuring plan, which includes extending interest payments and lengthening the maturity of this international bond tranche by one year.

A view of Novaland's resort real estate project in Lam Dong. Photo: NVL.

In early April, Novaland announced that BNP Paribas Financial Markets (France) had converted 15 bonds into company shares. With a total value of nearly 3,38 million USD, bondholders received nearly 2,48 million NVL shares. The conversion price was 34.000 dong, more than double the market price of the shares at that time.

In late 2025, four foreign investors converted a total of 133 bonds into nearly 20,8 million NVL shares.

During a press meeting in mid-April, a Novaland representative stated that the company's debt structure is gradually shifting to reduce short-term financial pressure. The company expressed confidence in having overcome the "survival" period and is re-entering the growth race in the real estate sector. Going forward, they will focus resources on fulfilling commitments to customers, investors, bondholders, and shareholders.

Converting bonds into shares has been one of the restructuring options proposed recently. However, according to an NVL representative, the proposed price was significantly higher than the market price at the time of negotiation, which made the option less attractive to bondholders.

This year, the company plans for a record revenue of 22.715 billion dong and a post-tax profit of 1.852 billion dong, a 0,5% decrease due to the impact of high borrowing interest rates. The main drivers are expected to be the handover of over 2.600 products, the issuance of over 4.300 land titles for projects in central TP HCM, and the continued sale of 2.100 units to the market.

Tat Dat