Novaland seeks VND 8 trillion for bond repayments as NVL trading surges and home sales slow

A capital raising plan meets a widening cash challenge

Novaland plans to raise nearly VND 8.007 trillion by selling almost 800.7 million new shares, with the proceeds earmarked for bond repayments at the Vietnamese property developer and two subsidiaries. The fundraising comes against VND 72.9 trillion in borrowings at June 30, 2026, including more than VND 16.7 trillion in overdue principal.

The company has extended the deadline for shareholders to transfer subscription rights to November 23, 2026, and the deadline to register and pay for shares to November 26. Payments to bondholders are planned from the fourth quarter of 2026 through the first quarter of 2027.

About 570 million NVL shares changed hands over a month, equivalent to nearly 24% of the more than 2.4 billion shares listed on the Ho Chi Minh Stock Exchange. Heavy trading accompanied sharp price falls, occasional recoveries and opposing transaction plans by shareholders connected to the founding family.

Novaland's operating figures show why the fundraising matters. The company estimated profit after tax above VND 2.8 trillion for the first nine months of 2026, reversing a loss a year earlier. Yet it recorded only 218 new home sales during those nine months, including 19 in the third quarter, while operating cash flow was negative by about VND 3.6 trillion in the first half.

The recovery therefore has several moving parts: collecting money from projects, completing homes, negotiating debt extensions and persuading shareholders to supply fresh capital. The planned share sale would raise an amount equivalent to about 11% of June's borrowings, leaving project income and other restructuring measures central to the company's finances.

Where the VND 8.007 trillion would go

Novaland's detailed capital allocation plan directs VND 5,953.3 billion toward partial or full repayment of principal on 13 bond issues issued by the parent company. Principal is the original amount borrowed, separate from interest. Those payments would account for roughly 74% of the expected proceeds.

Another VND 916.3 billion would be contributed to Nova Saigon Royal to repay principal on bond NSRCH2223001. Novaland plans to contribute VND 1,137.3 billion to No Va Thao Dien for principal payments on bond NTDCH2227001. Together, the two subsidiary allocations total VND 2,053.6 billion.

The three allocations add up to VND 8,006.9 billion, almost exactly the anticipated fundraising total. This makes the offering a plan to replace borrowing with shareholder capital, with the money assigned to existing bond obligations rather than a broad construction spending programme.

The parent company's 13 bond codes are NVLH2224006, NVLH2123010, NVLH2123014, NVLH2123009, NVLH2123007, NVLH2123011, NVLH2223008, NVLH2123013, NVLH2123003, NVLH2124002, NVLH2123006, NVLH2223007 and NVLH2224005. The amount paid on each will depend on arrangements with bondholders.

Novaland says the timing and amount of disbursements can change with market conditions, funding arrangements and negotiations. If the offering raises less than planned, it intends to prioritise overdue obligations at the parent company, followed by Nova Saigon Royal and No Va Thao Dien.

What shareholders are being asked to buy

The offering price is VND 10,000 per share. The detailed terms give an eligible shareholder the right to buy one new share for every three already held. For example, someone holding 3,000 shares could subscribe for another 1,000 by paying VND 10 million.

A rights offering gives existing owners an opportunity to maintain their share of the company by investing more money. If the issue is fully subscribed, a shareholder who keeps the same number of shares would hold a smaller percentage of the enlarged total. The new shares will have no transfer restrictions.

NVL closed at VND 10,750 on October 21, putting the market price 7.5% above the subscription price. At that level, the price advantage of subscribing is relatively narrow, making movements in the traded share price relevant to shareholders deciding whether to commit more cash.

The offering was registered under certificate 431/GCN-UBCK, issued by the State Securities Commission on September 14, 2026. Full completion would increase Novaland's charter capital from nearly VND 24.021 trillion to nearly VND 32.028 trillion. Charter capital reflects the registered face value of shares, while the company's market value changes with its stock price.

Heavy trading and opposing family transactions

More than 97 million NVL shares traded on September 30, with turnover approaching VND 1 trillion. That followed two consecutive sessions at the daily lower price limit. The previous day, more than 65 million shares had been queued for sale at that limit, the lowest price permitted for the session.

September 30 was also the ex-rights date, when buyers of the traded shares ceased to receive the subscription entitlement attached to the offering. Trading remained active afterward, reaching 51.3 million shares on October 2 and more than 73 million on October 9.

Diamond Properties registered to buy 7 million NVL shares from October 26 to 30 through exchange trades or negotiated transactions, saying it wanted to rebalance its portfolio. Completion would lift its holding from about 178.4 million shares, or 7.423%, to about 185.4 million, or 7.715%. At VND 10,750 per share, the purchase would cost approximately VND 75.25 billion.

Diamond Properties had sold 2.58 million shares on October 6 out of 2.7 million registered for sale, citing a change in plans for the uncompleted portion. Bui Cao Nhat Quan, Novaland's board chairman, also holds a management role at Diamond Properties and personally owns nearly 81 million NVL shares, equivalent to 3.368%.

Cao Thi Ngoc Suong, Quan's mother and the wife of founder Bui Thanh Nhon, registered to sell 6.3 million shares during the same October 26 to 30 period for personal financial needs. Completion would reduce her holding from more than 51.8 million shares, or 2.156%, to more than 45.5 million, or 1.894%. The registered purchases and sales still require completion disclosures to show the resulting holdings.

Debt negotiations extend beyond the share sale

About VND 30.5 trillion of Novaland's June 30 borrowings was due within 12 months, including approximately VND 13.2 trillion in bonds. That means roughly 42% of total borrowings fell within the coming year's repayment schedule.

The company recorded VND 16.716 trillion in overdue loan and bond principal. It said creditors had agreed to extend repayment on VND 3.244 trillion, while negotiations continued on other obligations. Novaland attributed delayed payments to difficulties arranging enough money.

Asset disposals form another part of the restructuring. Novaland set out a plan to sell assets valued at around VND 15.617 trillion and said four assets worth a combined VND 11.266 trillion had been sold, with five others still being marketed. The stated value of completed sales represents about 72% of the disposal programme's target value.

The reviewed financial statements for the first half of 2026 cited material uncertainty about Novaland's ability to continue as a going concern. In plain language, that means its ability to keep operating depends on resolving major funding and repayment pressures.

On October 6, Novaland rejected social media claims that it was bankrupt or unable to operate, saying they inaccurately described its legal status and business activities. Its operational response includes continuing construction, handing over homes, seeking fresh capital and negotiating with creditors.

Profit rises while new sales lose momentum

Novaland estimated third quarter net revenue above VND 5 trillion, an increase of about 200% from a year earlier, and profit after tax above VND 1.1 trillion. Estimated revenue for the first nine months exceeded VND 10 trillion, while profit after tax topped VND 2.8 trillion, compared with a VND 1.82 trillion loss in the same period of 2025.

The estimated nine month profit was about 1.5 times the full year target of roughly VND 1.85 trillion. Revenue, by contrast, had reached just over 44% of the approximately VND 22.7 trillion annual target. Novaland was ahead of its profit goal while still far short of its planned revenue.

New sales slowed during the third quarter. The cumulative total rose from 152 homes at the end of May to 199 at the end of June, meaning June alone added 47. July added seven, followed by six each in August and September, bringing the nine month total to 218.

The third quarter's 19 new sales were fewer than half June's 47. Meanwhile, homes sold in earlier periods continued to move toward completion and handover, helping explain how current sales activity and reported revenue can move at different speeds.

Property developers may recognise revenue when contractual and delivery conditions are met, while customer payments and construction bills follow their own schedules. Novaland's negative operating cash flow of about VND 3.6 trillion in the first half shows that cash leaving its operating activities exceeded cash coming in during that period. Paying bonds requires cash, making collections as important as accounting profit.

Home deliveries approach half the annual target

Novaland said it had handed over 1,318 homes by September 30 against a 2026 target of 2,651, reaching 49.7% of the plan. The third quarter contributed 977 handovers, leaving 1,333 homes to deliver in the final quarter to meet the annual goal.

Victoria Village accounted for more than 920 apartments delivered by the end of September, making it a major contributor to the company's handover activity. Novaland also recorded 1,387 property ownership certificates issued across its projects, including 357 added during the third quarter.

These certificates, commonly called pink books in Vietnam, formally record land use rights and ownership of homes or other property attached to the land. For buyers, receiving a finished home and obtaining ownership paperwork are separate practical milestones.

Novaland's annual certificate target covers 4,347 properties in Ho Chi Minh City, while the reported 1,387 certificates cover projects across its portfolio. The two figures have different geographical scopes. The handover figures provide the direct measure of progress against its stated annual delivery target.

Aqua City and other projects carry the recovery plan

Aqua City, a development covering more than 1,000 hectares in Dong Nai, is scheduled to resume sales on October 31 after a prolonged period of resolving legal obstacles. Novaland says relevant sections have completed legal procedures needed to sign sale contracts.

The project aims to build more than 1,000 homes and hand over more than 500 during 2026. Construction, infrastructure work and finishing activities continue at River Park 1, River Park 2, Ever Green and Phoenix Island.

In Ho Chi Minh City, The Grand Manhattan is continuing finishing work with some amenities targeted for handover in the fourth quarter. Victoria Village is continuing completion and apartment deliveries, while The Park Avenue remains under construction. At NovaWorld Phan Thiet, the Novotel hotel is targeted to begin operating in the first quarter of 2027.

Founder Bui Thanh Nhon, in a message marking NovaGroup's 34th anniversary, described completing products, delivering homes, obtaining ownership certificates and meeting customer commitments as current responsibilities. He linked progress on those tasks to rebuilding revenue, cash flow and customer confidence.

Novaland has also outlined more than 166 hectares of strategic land in Ho Chi Minh City with potential development of around 14,500 apartments. The company says the Ministry of Agriculture and Environment has asked city authorities to review obstacles affecting Binh Khanh, also known as The Water Bay, and Thanh My Loi B. Nearer term, the concrete milestones are completed homes, signed contracts and cash collected.

The dates and funding steps to watch

Novaland's rights offering is the first of three capital raising plans approved by shareholders in July. The others are a private placement of up to 800 million shares to no more than 20 professional securities investors and an employee share ownership programme involving more than 111.7 million shares.

The company plans to undertake those issues after the offering to existing shareholders. The final amount raised through the current offering is not yet known, and its planned bond payments depend on subscriptions and arrangements with creditors.

• September 14, 2026: The State Securities Commission issued registration certificate 431/GCN-UBCK.
• September 30 and October 1: The shares traded ex-rights, followed by the record date determining eligible shareholders.
• October 19: Novaland announced the extension of the rights transfer and subscription deadlines.
• October 26 to 30: Diamond Properties and Cao Thi Ngoc Suong scheduled their registered share transactions.
• October 31: Aqua City sales are expected to resume.
• November 23: Extended deadline to transfer subscription rights.
• November 26: Extended deadline to register and pay for new shares.
• Fourth quarter of 2026 through first quarter of 2027: Planned period for bond principal payments using the proceeds.

Key Points

• Novaland seeks nearly VND 8.007 trillion through almost 800.7 million new shares priced at VND 10,000 each.
• VND 5,953.3 billion is allocated to 13 parent company bond issues, with another VND 2,053.6 billion going to two subsidiaries for bond repayments.
• June borrowings totalled VND 72.9 trillion, including VND 30.5 trillion due within 12 months and more than VND 16.7 trillion in overdue principal.
• Estimated profit after tax exceeded VND 2.8 trillion for nine months, while first half operating cash flow was negative by about VND 3.6 trillion.
• Novaland recorded 218 new sales and 1,318 handovers by September 30, reaching 49.7% of its annual delivery target.
• Shareholders have until November 26 to register and pay; planned bond repayments extend into the first quarter of 2027.