Novaland (HSX: NVL) has successfully issued $300 million of international convertible bonds to foreign investors without warrants and collateral to be listed on the Singapore Exchange.
With a maturity of five years and fixed coupon rate of 5.25 per cent a year, the bonds are convertible into common Novaland shares. The conversion price is VND135,700 ($5.90) per share – 15 per cent higher than the closing price of the company’s shares at the launching date (July 7). The denomination of each bond is $200,000 in principal amount.
Credit Suisse (Singapore) Ltd. is the sole global coordinator and sole bookrunner for this transaction.
The issuance received great interest from reputable international investors. The order book was multiple times oversubscribed relative to the deal size of $300 million.
According to Novaland, the capital raised from this issuance will be allocated to landbank acquisition and project development to achieve its 3-year earnings target. Additionally, the success of this transaction will strengthen the company’s debt profile with the dominance of mid- and long-term borrowings.
|The Aqua Marina complex of Aqua City (Bien Hoa, Dong Nai) has a scale of more than 1,000 hectares, one of three key projects of Novaland Group in the 2021-2023 period |
Given the COVID-19 complications in Vietnam and the world, Novaland's successful mobilisation of $300 million from the international capital market demonstrates the strong conviction of international investors in the capability and outstanding prospects of the group.
Previously, the group had issued $240 million of international convertible bonds listed on the Singapore Exchange in April 2018 and December 2018.