Novaland receives second tranche of international syndicated loan

By Pham Van    March 30, 2020 | 08:30 pm GMT+7

Real estate developer Novaland has received the second disbursement from a $250 million syndicated secured term loan.

The first disbursement of $149 million of this facility was disbursed in the fourth quarter of 2019.

Credit Suisse AG (Singapore) is the original mandated lead arranger and bookrunner (OMLAB) of the transaction.

The facility was oversubscribed by a number of leading international commercial banks, an endorsement of Novaland’s solid business growth, the company said in a release.

As a result of the strong interest, the facility was upsized from its original $150 million target to $250 million. The loan facility is expected to support the execution of Novaland's business expansion, including the acquisition of additional land banks and the construction and rollout of new projects, while diversifying its funding channels at competitive prices.

Bui Xuan Huy, CEO of Novaland Group, said he appreciated the strong confidence and commitment to Vietnam displayed by the investors via the upsizing of the loan, especially in this extraordinary time.

Novaland is well prepared not only to overcome this difficult situation with our tested experience and advance planning, but also to thoroughly take advantage of appropriate opportunities presented to us during this challenging time, he said.

Huy said that Novaland would stick to strengths: a centralized orientation, clear business strategy, stable land bank, healthy financial structure, prudent risk management, and strict law compliance. These are factors in strengthening its competency to become an international Vietnamese brand, he said.

Currently, Novaland is one of two Vietnamese real estate developers to successfully list its convertible bonds on the Singapore Stock Exchange.

On the Vietnam Stock Exchange, Novaland’s shares (BBG: NVLVN) have been added into the two leading ETF funds, FTSE Vietnam and VNM ETF, six months after its listing. In 2019, Novaland’s shares were also added into the Vietnam Sustainable Development Index (VNSI) of the Ho Chi Minh Stock Exchange as well as into other leading stock indices, namely VN30 and VN100.

In 2020, Novaland Group has continued implementing phase 2 of its strategic development roadmap, primarily focused on the development of mid to high-end properties with three key product lines: centrally-located real estate in Ho Chi Minh City, satellite urban areas in HCMC’s surrounding provinces, and residential projects and integrated resorts (second homes) in high potential tourism destinations.

One of Novaland’s competitive advantages is its total accumulated and under-research land bank of approximately 4,894 hectares, ensuring the group’s sustainable growth over the next 10 years.

Novaland is preparing to introduce residential projects in HCMC, the Aqua City eco-township in Dong Nai Province and second home products in NovaWorld Phan Thiet and  NovaWorld Ho Tram. 

For 2020, Novaland is working with Japanese and Korean design consulting partners such as Kume Asia Design, Map Hantherin Vina, SAI Associates, Haeahn Architecture, Junglim Architecture Vietnam and Samoo Architects & Engineers.

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NovaWorld Phan Thiet entertainment and tourism complex 

The group is also focused on swift implementation of its Business Contingency Plan (BCP) to ensure continued business operations and uninterrupted transactions for customers.

 
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