A corner of Novaland's Aqua City project. — Photo thanhnien.vn

Novaland Group said that its bond holders have agreed to extend the company's bond packages as well as to restructure Novaland's US$300 million international convertible bond package which officially takes effect on Monday.

This can be seen as a positive sign for Novaland after a period of financial restructuring efforts.

The international convertible bond package with an interest rate of 5.25 per cent and due in 2026, can be converted into common shares for which Novaland has reached consensus on restructuring and received approval from the Singapore International Commercial Court (SICC) at the end of April this year.

Accordingly, the payment time is the bond maturity date in June 2027 or the early redemption (if any) in the future.

Bond holders can also convert bonds to NVL shares with an initial conversion price of VNĐ40,000 (US$1.6) per share, conversion rate is 134,135 shares per bond.

After receiving approval from SICC, the company worked with relevant agencies to officially obtain approval, as well as confirm the completion of prescribed procedures, said Novaland.

The completion of restructuring procedures for this international bond package shows the confidence of bond holders in Novaland's ability to recover in the context of Việt Nam's financial and real estate markets being negatively affected by world and regional macro-economics.

That is also the result of Novaland's efforts to focus on removing liquidity bottlenecks and negotiating debt restructuring options with financial partners over the past time.

In an effort to handle its bonds, at the end of June this year, Novaland agreed to extend 8/17 batches of NVL2020 bonds with a total issuance value of nearly VNĐ3.11 trillion, changing the bond term to 60 months, i.e. maturity from June - August next year. — VNS