HCMC – No Va Land Investment Group Corporation (Novaland) has failed to provide additional collateral for a VND1-trillion bond issue, violating bond terms, according to a report by MB Securities JSC (MBS).
MBS, acting as a bondholder representative, notified Vietnam’s State Securities Commission, the Vietnam Stock Exchange, and the Hanoi Stock Exchange that Novaland had not met the required collateral coverage for the NVLH2123010 bond lot. Under the bond terms, if collateral value falls below 100% of the outstanding bond principal, Novaland must supplement assets within specified deadlines.
On January 10, the collateral coverage for the bond dropped below 100%. MBS issued a notice requiring the addition of real estate as collateral within 30 days or other assets within 10 business days. Novaland has not complied, breaching the bond agreement.
Novaland issued the bond lot on September 17, 2021, with a 42-month term and an annual coupon rate of 10.5%. The bond will fall due on March 17, 2025.
The real estate company has also delayed payments on the NVLH2123009 bond, which carries a total obligation of nearly VND800 billion, due on February 12 this year. The amount includes VND750 billion in principal and over VND53 billion in coupon. Novaland has only paid VND8 billion of the principal, citing difficulties in securing funds. It is negotiating with investors on repayment terms.
Additionally, Novaland has delayed payments on the NVLH2224005 bond lot worth VND500 billion. It was due to repay VND473 billion in principal on February 17, but has only settled VND5 billion. Including unpaid coupons of over VND21 billion, the outstanding balance now stands at nearly VND490 billion.
Closing the trading session today, February 26, its NVL shares inched down 0.5% to VND9,900, with a matching volume of 5.9 million shares.
The VN-Index saw a marginal decrease of 0.2 point, or 0.02%, to 1,302.96 points, with 198 winners and 259 losers.
Stock trade dropped 14.4% in volume and 14.8% in value over the previous session, with 758.3 million shares worth VND16.7 trillion changing hands. Block deals totaled 47.8 million shares valued at VND1.14 trillion.
Securities stocks rebounded in the afternoon after a weaker morning session. Most stocks in the sector advanced, with only VCI edging lower.
Steel stocks continued their upward trend. NKG, HPG, and HSG rose 1.76%, 0.91%, and 0.85%, respectively, while TLH and VCA surged to their ceiling prices.
Bank stocks saw little change. NAB replaced EIB as the best performer in the sector, rising 2.55% to VND18,100, while SHB and EIB barely increased. CTG, SSB, and STB led the decline, falling between 1% and 1.8%.
VIX led brokerage stocks in trading volume with nearly 37 million shares. HPG topped steel stocks with 31.8 million shares, while SHB was the most actively traded bank stock with 28.4 million shares.
BCG recorded the highest liquidity on the southern bourse, with 39.7 million shares traded, closing 4.55% lower at VND5,870.
The HNX-Index added 0.29 points, or 0.12%, at 238.6 points, with 98 stocks rising and 81 others falling. Trading volume totaled 68.4 million shares valued at VND1.2 trillion.
