Vietnamese property developer Novaland (NVL) has requested another delay on a VND 1.3 trillion (US$50 million) bond lot—just one month before it is due—despite already securing a two-year extension in 2023, VN Express has reported→view source.
Key details:
- Bond lot NVLB2123012 was issued in 2022 on the Hanoi Stock Exchange with a face value of VND 100,000 per bond, used in part to repay a prior bond and fund a subsidiary.
- Originally extended in June 2023 by 24 months to July 20, 2025, NVL is now seeking further deferment from bondholders.
- The bond accrues 11.5 percent annual interest during the extension, with VND 193 billion (US$7.42 million) in unpaid interest as of mid-2024.
- Collateral has shifted from NVL shares held by major shareholders to assets linked to a Phan Thiet project.
- NVL’s total debt stands at VND 59 trillion (US$2.27 billion), with VND 32 trillion (US$1.23 billion) due within 12 months.
- The firm has acknowledged that cash flow constraints and slow legal project approvals mean it cannot fully repay debt until at least 2027.
Novaland’s repeated bond deferrals underscore the ongoing liquidity crisis facing Vietnam’s property sector.
With over US$1.2 billion in short-term obligations and limited cash flow, NVL’s survival increasingly depends on creditor leniency, project clearance, and successful restructuring.
The case is emblematic of broader market fragility and may serve as a warning signal for investors exposed to Vietnam’s corporate bond market.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked