Novaland bonds can be converted to shares at three times market price

Bondholders of a $300 million international bond package of Vietnam’s leading real estate developer Novaland must pay more than triple the market price to convert their bonds to shares.

According to a new decision by the firm's board of directors, the conversion price is set at VND36,000 ($1.41) per NVL share, and the conversion ratio is one bond per 149,038 shares. NLV is the ticker of Novaland on the Ho Chi Minh Stock Exchange.

The conversion price is 3.5 times the NVL price of VND10,250 ($0.4) as of December 31, 2024.

Novaland issued international convertible bonds worth $300 million for foreign investors without warrants and collateral in 2021, which are listed on the Singapore Stock Exchange.

The bonds have a five-year term, maturing in 2026, with a fixed annual interest rate of 5.25%. Each bond, valued at VND200,000 ($7.86), was initially set with a conversion price of VND135,700 ($5.30) per share.

In July 2024, Novaland said it completed the restructuring of the bond package, with an initial conversion price of VND40,000 ($1.57) per NVL share.

Last week, the company announced plans to repurchase all bonds issued since 2020 ahead of their maturity dates for an estimated of maximum VND7 trillion ($275 million).

After nearly two years of comprehensive restructuring, Novaland said it has successfully restructured most of its debts. The company has also secured additional capital to implement its project.

In the first nine months of 2024, Novaland posted nearly VND4.3 trillion ($170 million) in net revenue, up 57% year-on-year. It incurred a net loss of VND4.37 trillion ($172 million) in the period.