“Novaland Proposes a Debt Exchange Offer for 13 Bond Codes”

7 August, 2025

Novaland Joint Stock Group Investment Corporation (code NVL-HOSE) has just announced a supplementary proposal to seek shareholder approval for the plan to issue shares to convert bond principal debt.

Specifically, the bond codes that Novaland wants to handle are 13 bond codes issued from 2021 to 2023 with a total outstanding principal amount of VND 6,074 billion.

According to the plan to be presented at the upcoming extraordinary general meeting of shareholders, Novaland plans to issue more than 151 million shares to convert the entire principal debt of these bond codes, with an issue price of VND 40,000/share and an exchange rate of 40,000:1 (VND 40,000 of bond principal debt will be entitled to convert into 1 newly issued share).

The above determination method and exchange rate are based on the book value of NVL shares at the end of 2024, as well as Novaland’s expectations about the expected market price at the time of issuance after completing the procedure.

After being approved by the shareholders for this policy, Novaland will negotiate and negotiate a more detailed plan with the bondholders to submit to the Board of Directors for approval in accordance with its competence, and at the same time, submit it to the State Securities Commission for approval to implement the issuance plan, expected in 2026.

Shares issued to convert bond debt are restricted from transferring within 1 year. If the issuance is successful, Novaland’s charter capital will increase to more than VND 21,019 billion.

Previously, NVL announced the proposal “Plan to issue private placement shares to convert debt”. Accordingly, the company plans to issue 168,014,696 private placement shares to convert a total debt value of more than VND 2,645 billion, with an issuance price of more than VND 15,746/share.

Thus, the debt value corresponding to more than VND 15,746 will be converted into 1 newly issued common share. The above conversion price is determined based on the average closing price of Novaland shares on the Ho Chi Minh City Stock Exchange (HoSE) for the last 30 trading days from June 19 to July 30. The ratio of the number of shares issued to the total number of listed shares is more than 8.6%.

If successful, the company’s charter capital will increase from over VND 19,501 billion to over VND 21,181 billion.

After being approved by the General Meeting with the policy of issuing shares to convert debt, Novaland will submit it to the State Securities Commission for approval to carry out the necessary procedures in accordance with the law to implement the issuance plan. The expected implementation time is in the 4th quarter of 2025 to the 1st quarter of 2026.

NVL also announced a list of creditors to be issued shares to convert debts, including: NovaGroup, Diamond Properties, and Ms. Hoang Thu Chau based on the list of creditors related to item V.19 – Payables from selling collateralized shares of guarantors as of December 31, 2024, which was presented in NVL’s separate audited financial statements for the year 2024, at the same time, the above creditors have reached an agreement in principle on debt conversion with Novaland.

It is known that this is the amount that Novaland has to pay to the parties who have mortgaged shares for secured loans so that the company can perform the obligation to pay debts when they fall due. In the most difficult period of Novaland, these shareholders committed to accompany and support so that Novaland could pay debts when they fall due and maintain continuous operation.

Currently, NVL share price is at VND 18,200/share and has doubled from the bottom established in April this year.