Novaland okays $40 mln loan from VietinBank Filiale Deutschland, Maybank

Novaland, a leading property developer in Vietnam, has approved a maximum loan of $40 million granted by VietinBank Filiale Deutschland - a VietinBank branch in Germany - and Maybank Intenational Labuan Branch.

The developer also approved a loan in the Vietnamese dong with a maximum value of VND23 billion ($963,000) from VietinBank branch 1 in Ho Chi Minh City.

In early August, Novaland's board of directors had approved a transaction to secure the company's loan obligations for a $100 million loan from Credit Opportunities III Pte. Limited, a Singapore investment fund.

Novaland, one of Vietnam’s largest listed companies, announced this June that world-leading private equity firm Warburg Pincus has led a $250 million investment in the Vietnamese company. The deal marked the New York-based giant’s first investment in Novaland, kicking off their strategic partnership.

Novaland plans to use the proceeds to continue expanding its land bank and complete its ongoing flagship projects in southern Vietnam.

Previously, the company's board approved a medium and long-term loan worth VND1,300 billion ($54.44 million) at maximum, granted by MB Bank.

Its first-half net revenue was VND4,614 billion ($197 million), down by 34.5% year-on-year, while profit after tax decreased 9.7% to VND1,818 billion ($76.16 million).

One of Novaland's flagship projects in southern Vietnam is the Aqua City. Officially launched in June 2019, the project covering 1,000 ha to the east of Ho Chi Minh City was invested and developed by the company under the smart eco-urban model.

Since the third quarter of 2022, the project, located in Bien Hoa town, Dong Nai province, has been handing over houses to customers. By the end of 2022, a series of important works and utilities in the urban area had been completed, ready to serve residents’ needs. The highlights include the Aqua Marina-square complex; the Garden Palace light mansion; the multi-purpose Aqua Sport Center with indoor and outdoor sports spaces, health and beauty care areas associated with entertainment; the Aqua Security Center that applies modern AI technology; a commercial center and a high-class clubhouse chain.

As an investor in the province, in addition to its own benefits, Novaland wanted to build a smart urban area with full amenities as a leading model for the locality and the southern region.