According to Bloomberg article published on November 7, 2022, Vietnam’s second-largest listed developer is restructuring its business as developers struggle to access capital sources and potential home buyers face tightening credit, Tuoi Tre newspaper reported.
Ho Chi Minh City-based No Va Land Investment Group will focus on its core real estate business, reduce operational costs, cut staff and adjust construction plans in line with the the current market situation, the newspaper reported, citing No Va Land’s chairman Bui Xuan Huy. He said the company expects the State Bank to develop a plan to assist potential home buyers, investors and real estate developers, Tuoi Tre reported.
Shares of No Va Land fell by almost the daily limit of 6.8 per cent as of 2 pm local time, poised for its lowest close since Apr 13, 2021, on speculation the company is under huge margin calls from brokerages.
No Va Land is seeking to sell assets, Reuters reported, citing unnamed company and industry sources. The central bank has directed the company to redeem some of its corporate bonds because they were sold to investors without proper risk information, Reuters reported.
No Va Land, in an emailed statement, said the report that the central bank asked No Va Land to buy back bonds is inaccurate. “All fundraising activities of No Va Land, through bonds, stocks, loans, etc., have been implemented with transparency,” it said. “Our bond sales were reported fully, timely, and truthfully to the authorities and fully disclosed to investors and the public on portals as guided by the Ministry of Finance.”
No Va Land has postponed investments in some projects, the company said.
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Published on November 7, 2022 6:45 PM (GMT+8)Last Updated on November 7, 2022 6:45 PM (GMT+8)
