Property Developer Novaland Issues Shares to Raise $563M for Debt Restructuring, Vietnam

Property developer Novaland intends to raise $563 million through the issuance of 1.37 billion shares. The move is aimed at paying off and restructuring debts. Novaland plans to offer 200 million new shares with a one-year lockup period to up to five professional stock investors. Furthermore, it will distribute 1.17 billion bonus shares to existing shareholders at a ratio of six for every ten they own. The shares are expected to be issued at a minimum price of VND10,000 ($0.43) within this year. The funds raised will be used to settle debts, cover overheads, and pay wages. Additionally, Novaland plans to allocate funds to its subsidiaries for project financing. The decision to issue shares comes after the company reduced its planned private placement and rights issue. It has also engaged in negotiations with debtors to extend bond maturities or use alternative assets for repayment. With four main projects across several provinces in Vietnam, Novaland aims to prioritize the completion and delivery of ongoing projects. At a recent meeting with Prime Minister Pham Minh Chinh, Novaland’s CFO expressed confidence in the company’s progress, stating that it had completed 80% of its restructuring plan.