Novaland announces second drawdown of its inaugural syndicated secured term loan facility

Apr 05, 2020 | 05:50 PM GMT+7

TheLEADERNovaland Group, a leading real estate developer in Vietnam, has announced the second disbursement of $101 million from its $250 million inaugural syndicated secured term loan facility.

Novaland Group had previously received the first disbursement of $149 million from the facility in the last quarter of 2019. Credit Suisse AG (Singapore) is the original mandated lead arranger and bookrunner (OMLAB) of the transaction.

When the world economy is facing new challenges, a new disbursement for a Vietnamese real estate developer obviously indicates that investors and international lenders remain positive outlook on the Vietnamese real estate market in general, as well as their confidence and a long-term investment strategy in Novaland in particular.

Novaland currently is one of athe few property developers that receivinge strong support from the leading international financial institutions in accumulating more landbank, constructing and developing new projects, which landbank, constructing and developing new projects, which help accommodating Novaland’s active and diversified fundraising channels at competitive financial costs.

Currently, Novaland is one of two Vietnamese real estate developers successfully listing its convertible bond on the Singapore Stock Exchange. On the Vietnam Stock Exchange, Novaland’s shares (BBG: NVxVN) has been added into the two leading ETF funds - FTSE Vietnam and VNM ETF after six months from its listing. In 2019, Novaland’s shares were also added into the Viet Nam Sustainable Development Index (VNSI) of the Ho Chi Minh City Stock Exchange as well as into other leading stock indices, namely VN30 and VN100.

In 2020, Novaland Group continues implementing second phase of its strategic development roadmap, primarily focused on the development of mid to high-end properties with three key product lines comprise of central real estate in Ho Chi Minh City, satellite urban areas in Ho Chi Minh City’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 landbank of approximately 4,894 hectares, ensuring sustainable growth of the group in the next 10 years. 

Novaland is introducing residential projects in Ho Chi Minh City, Aqua City environmental township in Dong Nai province and second home products in NovaWorld Phan Thiet, NovaWorld Ho Tram. Novaland has continued recognizing relatively high take-up rate for low-rise and villa units in the first quarter of this year amid the shortage of property supply meanwhile the demand stays high in the real estate market in the south.

Novaland announces second drawdown of its inaugural syndicated secured term loan facility
Aqua City environmental township in Dong Nai province

At the moment, Novaland Group has speedily implemented the business contingency plan to assure the Group’s continuous business operations and customers’ uninterrupted transactions.

“Novaland greatly appreciates the investors’ strong confidence and commitment to Vietnam and Novaland in this loan upsize, especially in this extraordinary time. Novaland is well prepared not only to overcome this difficult situation with our tested experience and in-advance planning but also throughly take advantage of appropriate opportunities presented to us during this challenging time," said Bui Xuan Huy, CEO of Novaland Group. 

Huy added: "We strongly believe in our direction: a centralized orientation, clear business strategy, stable landbank, healthy financial structure, prudent risk management, and strict law compliance; strengthening competency to become the Vietnamese international brand. We will work more diligently and harder to meet the invaluable trust of our customers partners and investors put on Novaland."