Novaland doubles bond-to-share conversion price

An artist’s impression of shophouses at NovaWorld Phan Thiet, a project developed by Novaland. Photo courtesy of Novaland

Investors in Novaland – issued international bonds, worth a total of $300 million, must pay almost double to convert the bonds to shares, according to a latest decision by the property developer.

The conversion price is now set at VND77,000 ($3.14) per NVL share, 93% higher than it was in mid-December last year.

The conversion ratio is one bond per 59,771 shares.

The new price range is 4.7 times the NVL current market price of VND16,300.

Its value has been fluctuating around this level ever since investors last month approved a company plan to delay payment on the $300 million worth of bonds issued in 2021.

Novaland has been focusing on restructuring debt since last year.

The firm has reported that it prioritizes completing projects to increase revenues amid an expected recovery in the property sector.

In November last year, Novaland financial director Duong Van Bac said the company had overcome its most difficult time and the restructuring process was 80% complete.