Novaland (NVL) Converts USD 2.36M International Bonds, Launches VND 8,007B Rights Issue

Overview

Novaland (HOSE: NVL) completed the issuance of 1.73 million shares to convert 10 international convertible bonds under the NVLD2126009 series, valued at USD 2.36 million (roughly VND 59 billion), according to a company filing. The conversion was executed at VND 34,000 per share, well above the current market price of VND 10,750 as of 14 October 2026. In parallel, the real estate developer is proceeding with a rights issue of up to 800.7 million shares at VND 10,000 each, targeting gross proceeds of nearly VND 8,007 billion.

Key Facts

• Conversion date: 6 October 2026; 1.73 million shares issued to convert 10 bonds of series NVLD2126009.
• Conversion price: VND 34,000 per share, using a fixed exchange rate of VND 24,960 per USD.
• Conversion ratio: 173,708 common shares per bond; share transfer expected in October-November 2026.
• Bondholder: BNP Paribas Financial Markets, headquartered in Paris, France.
• NVLD2126009 series: 1,500 bonds at USD 200,000 face value each, raising USD 300 million; issued 16 July 2021, 7-year tenor, maturing 16 July 2028, unsecured.
• Rights issue: up to 800.7 million shares at VND 10,000 each, ratio 3:1, subscription window 8-29 October 2026, transfer window 8-26 October 2026.
• Use of proceeds: VND 5,953.3 billion for principal repayment on 13 domestic bond series; VND 916.3 billion to Nova Saigon Royal; VND 1,137.3 billion to No Va Thao Dien.

What Happened

Novaland reported that on 6 October 2026 it issued 1.73 million shares to partially convert its international convertible bond series NVLD2126009, following a request from bondholders. The converted tranche carries a total value of USD 2.36 million, equivalent to more than VND 59 billion, at a conversion price of VND 34,000 per share and a fixed exchange rate of VND 24,960 per USD. The shares are expected to be delivered during October-November 2026. The bondholder participating in this conversion is BNP Paribas Financial Markets, based in Paris.

The NVLD2126009 series originally comprised 1,500 bonds with a face value of USD 200,000 each, raising USD 300 million when issued on 16 July 2021. The bonds carry a 7-year tenor, mature on 16 July 2028, and are unsecured. Proceeds were allocated to issuance-related fees, capital increases at Nova Hospitality JSC and Saigon Housing and Infrastructure Investment Development Co. Ltd., and a capital injection into No Va Real Estate Investment JSC. Separately, Novaland is offering up to 800.7 million new shares to existing shareholders on a 3:1 basis at VND 10,000 per share, with registration running from 8 to 29 October 2026. The company plans to direct VND 5,953.3 billion toward principal repayment on 13 domestic bond series, VND 916.3 billion into Nova Saigon Royal, and VND 1,137.3 billion into No Va Thao Dien, with disbursements scheduled between Q4 2026 and Q1 2027.

Market Context

NVL closed at VND 10,750 on 14 October 2026 on the Ho Chi Minh Stock Exchange (HOSE), below both the VND 34,000 international conversion price and the VND 10,000 rights issue price. The stock has traded in a narrow band through 2026 as the company works through a multi-year restructuring of its bond liabilities. The Vietnamese real estate sector remains under pressure from corporate bond maturity walls, and the broader VN-Index has been range-bound as investors weigh slow credit recovery against policy support measures. Novaland’s ability to retire domestic bond principal using fresh equity is a central test case for how large developers manage refinancing risk without new bank credit.

Strategic Significance

The conversion of international bonds at VND 34,000 signals that at least some foreign bondholders are willing to accept equity rather than demand cash repayment, which reduces near-term hard-currency obligations ahead of the July 2028 maturity. The larger strategic lever is the VND 8,007 billion rights issue: by pricing new shares at VND 10,000 and earmarking roughly 74 percent of proceeds for principal repayment on 13 domestic bond series, Novaland is effectively swapping bond debt for permanent equity. That lowers leverage and interest burden but dilutes existing shareholders substantially, given the 800.7 million new shares represent a large increase relative to the current share count. The plan also channels capital into Nova Saigon Royal and No Va Thao Dien, keeping project-level entities current on their own bond obligations.

What to Watch

• Rights issue subscription results after the 29 October 2026 close, including the take-up rate and any unsubscribed shares.
• Share delivery for the 1.73 million converted shares during October-November 2026.
• Further conversion notices from BNP Paribas Financial Markets or other holders of the remaining NVLD2126009 bonds.
• Q4 2026 and Q1 2027 disbursement progress against the 13 domestic bond series and the two subsidiary capital injections.
• Any additional HOSE disclosures on the final number of shares issued and the resulting charter capital update.