Novaland announces second drawdown of its inaugural syndicated term loan facility

Friday, Mar 27, 2020 18:00

Giant propery developer Novaland Investment Group Corporation (NVL), has recenlty announced a second disbursement of US$101 million from its $250 million inaugural syndicated secured term loan facility.

The facility was oversubscribed by leading international commercial banks, an endorsement of Novalands solid business growth.

The first round of disbursement, of $149 million, was finished in the fourth quarter of last year.

Credit Suisse AG, Singapore, was the original mandated lead arranger and bookrunner of the transaction.

As a result of the strong interest, the facility was upsized from the originally proposed $150 million to $250 million.

When the global economy is facing new challenges, disbursement to a Vietnamese real estate developer obviously indicates that investors and international lenders retain a positive outlook on the Vietnamese real estate market and confidence in Novaland in particular.

The facility supports the execution of Novalands further business development, including the acquisition of additional lands and construction and roll-out of new projects, while diversifying its channels of funding at competitive pricing.

Novaland is one of only two Vietnamese real estate developers to list its convertible bonds on the Singapore Stock Exchange.

In the Viet Nam stock market, Novalands shares (BBG: NVLVN) have been added to the two leading ETF funds, FTSE Vietnam and VNM ETF, six months since their listing.

Last year they were also added to the Ho Chi Minh Stock Exchanges Vietnam Sustainable Development Index and other leading stock indices like the VN30 and VN100.

The ecological urban area - Aqua City (Dong Nai) )

In 2020 Novaland Group has continued to implement phase 2 of its strategic development roadmap primarily focused on the development of mid-range to high-end properties with three key product lines comprising centrally located real estate in HCM City, satellite urban areas in HCM Citys surrounding provinces, and residential projects & integrated resorts (second homes) in tourism destinations with high potential.

One of Novalands competitive advantages is its total accumulated and under-research land ownership of around 4,894 hectares, ensuring sustainable growth for the next 10 years.

Novaland expects to introduce residential projects in HCM City, Aqua City eco-township in Dong Nai province and second home products at NovaWorld Phan Thiet and NovaWorld Ho Tram. Novaland has continued to see a relatively high take-up rate for its low-rise and villa units in the first quarter of 2020 amid the shortage in property supply and high demand in the south.

Novaland Group also has a number of other initiatives planned for 2020. To build townships and "destinations" matching international standards, Novaland is working with Japanese and Korean design consulting partners such as Kume Asia Design, Map Hantherin Vina, SAI Associates, Haeahn Architecture, Junglim Architecture Vietnam, and Samoo Architects & Engineers. For distribution, all reputable distributors in the north and the south are able to access Novalands diversified portfolio.

With the NovaWorld Phan Thiet project, Novaland has signed agreements with many strategic partners such as the PGA of America (American Professional Golf Association) and IMG (the world's leading group in sports, events, media and fashion) to develop golf training programmes of international standard and organising golf tournaments with the participation of world-famous golfers.

In December 2019 Novaland signed a contract with the Vietnam Tennis Federation to bring an ATP 250 tournament to NovaWorld Phan Thiet and advised in the selection and training programmes for professional tennis players.

Tourist, Leisure and Entertainment Complex NovaWorld Phan Thiet (Binh Thuan)

Novaland Group has swiftly implemented its business contingency plan to ensure continued business operations and uninterrupted transactions with customers.

Bui Xuan Huy, CEO of Novaland Group, said: “Novaland is well prepared not only to overcome this difficult situation with our tested experience and advance planning but also throughly take advantage of appropriate opportunities presented to us during this challenging time”

“We strongly believe in our direction: a centralised orientation, clear business strategy, stable land ownership, healthy financial structure, prudent risk management, strict law compliance, and strengthening competency to become an international Vietnamese brand.

We will work more diligently and harder to meet the invaluable trust customers, partners and investors place in Novaland.”

Novaland Group is now a reputed property developer brand in Viet Nam. The Group now possesses and develops around 4,900ha of land, building housing projects in HCM City, satellite towns and hospitality real estate projects, ensuring sustainable growth for the next 10 years.

In phase 2 of its business strategy, Novaland will focus on developing cities and provinces with great tourism potential such as Can Tho, Ba Ria of Ba Ria-Vung Tau, Phan Thiet of Binh Thuan, Ninh Thuan, Cam Ranh of Khanh Hoa and Quang Nam of Danang.

The companys goal is to work with consultants and professional operators to create excellent destinations for domestic and international tourists, turn these places into tourism - hospitality - entertainment centres and contribute to creating an imprint for Vietnam on the world travel map.

Novaland has completed construction procedures and systems that meet international standards oriented towards a working environment of “Efficiency – Integrity – Professionalism” as well as sustainable and professional development in this era of global integration.

With a focused strategy and persistence to achieve the set goals, a clear business strategy, stable land bank, strong cash flows, stringent risk management, and compliance with the law, Novaland will operate effectively and sustainably to realize the vision of becoming “a leading economic group in Real Estate – Finance – Tourism – Infrastructure Development”.

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