No Va Land, Vietnam’s fifth-largest developer by market value. Photo: Asia Times.
No Va Land, Vietnam’s fifth-largest developer by market value, has been badly hit as the real estate sector bears the brunt of a state graft crackdown and stricter rules on corporate bond issuance and refinancing.
The company’s shares on Thursday were trading at 14,650 dong ($0.6230) per share, 80% lower than a year ago.
“No Va Land has made great efforts to sell assets, delay loan payment, and partner with credible consultants to restructure the company and control cash flow,” No Va Land’s chairman Bui Thanh Nhon told investors at its annual meeting, according to an audio recording obtained by Reuters.
“The group’s business activities will recover in the third quarter of 2023,” Nhon said.
Reuters last month reported No Va Land, whose total exposure to foreign creditors was worth about $1 billion at the end of last year, comprising bonds as well as loans with short and long-term maturities, was in talks with creditors including Credit Suisse to restructure debts.
No Va Land’s CEO Ng Tech Yow told investors that bonds outstanding from then until 2023 were around $255.16 million.
Over the past months, No Va Land has been given a green light by the government to resume construction of some key projects. The CEO said No Va Land would be developing three new projects from 2024 to 2025.
The firm has targeted annual revenue of $404 million and profit of $9.10 million this year, a fall of 14.5% and 90% respectively from 2022.
Source: Reuters
