Novaland converts bonds into shares as Vietnamese developer advances debt restructuring

Novaland on Tuesday approved a plan to issue new shares to convert part of its outstanding bonds, as the Vietnamese property developer continues restructuring its debt through equity-linked instruments.

Accordingly, the company (HoSE: NVL) will issue 2.47 million shares to convert 15 bonds with a total conversion value of VND84.2 billion ($3.2 million). The conversion ratio is set at 165,195 common shares per bond, with a conversion price of VND34,000 per share, based on a fixed exchange rate of VND24,960 per USD at the time of conversion.

The bondholder eligible for the conversion is Paris-headquartered BNP Paribas Financial Markets, with the transaction scheduled to be executed on March 31. If completed, Novaland’s charter capital will increase by approximately VND24.77 billion ($940,520).

The latest move follows an earlier plan approved in late 2025 to partially convert a $335 million international convertible bond package.

In that round, Novaland converted 133 bonds worth more than VND747 billion ($28.36 million) at a conversion price of VND36,000 ($1.37) per share, issuing nearly 20.8 million shares to four foreign investors.

The bond-to-equity swaps form part of Novaland’s broader efforts to ease debt pressure and improve financial flexibility after a period of liquidity strain in Vietnam’s real estate sector.

In 2025, Novaland reported a net profit of VND1.82 trillion ($69.96 million), marking a sharp reversal from a net loss of over VND4.39 trillion ($169 million) in 2024.

As of December 31, 2025, Novaland’s total assets stood at VND249.8 trillion ($9.61 billion), up 5% from the start of the year. Inventory amounted to VND153.4 trillion, largely comprising land bank and projects under development.

Total borrowings reached VND67.19 trillion ($2.58 billion), including VND31.52 trillion in short-term debt. Short-term borrowings declined by VND5.46 trillion year-on-year due to partial bond repayments, while long-term debt rose by VND11.09 trillion ($426.5 million) following new loan disbursements to support project implementation.

Novaland said it had largely completed the first phase of its restructuring, focused on resolving legal bottlenecks at key projects, and would accelerate construction and handovers in the next phase to meet commitments to customers, partners and creditors.

NVL shares closed at VND14,150 ($0.54) each on Wednesday.