NO VA LAND INVESTMENT GROUP CORPORATION

The subject operates in the real estate field with the major of developing residential projects, real estate business, civil and industrial construction, providing design activities and management consulting services, real estate broker. When the real estate market was tightened by the government at the end of 2022, it caused a crisis for a series of companies in the real estate and construction industry, and it was no exception. Furthermore, with a history of using high leverage, this company has also been severely affected by rising interest rates and a frozen real estate market.
Recently, in Jun 2024, this company continued to postpone the completion date of the settlement agreement for a USD 300 million bond batch to mobilize capital from 2021, listed on the Singapore Stock Exchange (SGX), has no collateral and matures in 2026. Each bond has a par value of USD 200,000 with an interest rate of 5.25% per year and has the right to convert to shares at an initial price of VND 135,700. However, the current conversion price is 40,000 VND/share.
In Apr 2024, the company also announced plans to offer 1.1 billion shares to existing shareholders in the form of buying rights. The actual ratio is 10:6 (shareholders owning 10 shares have the right to buy 6 new shares).
The selling price will be VND 10,000/share, equal to 67.5% of the market price on the floor of NVL shares. Notably, since the beginning of April the stock has dropped nearly 20%. After issuance, Novaland's charter capital is expected to increase by VND 19,501 billion to more than 31,200 billion VND. The expected implementation time is from the second quarter of 2024 to the fourth quarter of 2024. With the expected proceeds after the deal of VND 11,700 billion, Novaland is expected to use VND 10,566 billion to contribute capital to subsidiaries. In addition, the company will also use more than VND 855 billion to pay debt, VND 140.3 billion to pay salaries and VND 138.8 billion to operate the company.
In May 2024, under the pressure of prolonged financial difficulties, a few impatient customers "sent petitions to the authorities, including the Investigation Police Department in Ho Chi Minh City". Therefore, the super project of the subject - Aqua City, was requested by the police to provide documents to carry out information verification work according to the prescribed procedures. On 23 May 2024, the Deputy Secretary of the Provincial Party Committee and Head of the National Assembly Delegation of Dong Nai province said that the Aqua city project was completely legal and was being resolved. In about the next 1-2 months, a decision will be made to continue implementation.
In June 2024, the company continued to announce that it had approved loans including VND 177 billion with a term of 10 months, VND 115.5 billion with a term of 10 months for the purpose of supplementing working capital. The lending units are also member companies including: No Va My Dinh Land Joint Stock Company and Thanh Nhon Real Estate Joint Stock Company.