Novaland forced to buy back 864 billion VND 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 VND28.23 billion.

The transaction form is 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), representing the bondholders, 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 supplement collateral within 30 days of notification, and other assets must be supplemented 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 an arbitration case over a project worth more than VND11,000 billion in Thu Duc City.

At the close of the stock trading session on March 17, 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