Vietnamese property developer lists convertible bonds in Singapore

This is the first Vietnamese convertible bond listing on an international stock market in six years, it said.

The issue attracted interest from many investors in Asia and Europe, it said.

The US dollar denominated unsubordinated convertible bonds due in 2023 will be converted into ordinary shares of the company at an initial conversion price of VND74,750. The bonds, issued at par, carry a coupon of 5.5% payable semi-annually in arrears and a yield to maturity of 6.25%.   

Novaland also successfully raised US$150 million from an equity placement, taking the total capital raised to US$310 million. It is the largest ever issuance by a Vietnamese company involving a concurrent equity placement and convertible bond offering.

The company said it would use the proceeds from the combined offering to further build its land holdings in prime locations and develop housing projects, and for working capital and general corporate purposes.

The company plans to start three new projects this year.

Last week, at its annual general meeting, shareholders passed business plans for this year, with expected sales of VND21.78 trillion, after-tax profit of VND3.2 trillion, up 87% and 55% respectively.

Around 6,500 units are expected to be handed over this year at 11 projects, all of which have sold over 90% on average.