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Banking & Finance

Novaland Group receives $40mn loan facility

Released at: 05:40, 01/10/2017

Novaland Group receives $40mn loan facility

Photo: Duc Anh

Developer takes on first loan from Credit Suisse AG Singapore.

by Hong Nhung

Credit Suisse AG, Singapore Branch, has recently disbursed $40 million to Vietnamese property developer the Novaland Group. This is the first disbursement from a $100-million credit package committed by the Singaporean capital arranger with a 42-month term, signed between the two parties in early August.

After Novaland’s two previous secured loans were disbursed, Credit Suisse AG approved this unsecured loan to the developer. The loan has a competitive interest rate of 3-month LIBOR plus a margin of 5.5 per cent per annum.

Novaland’s brand name and prospective developments have been recognized and highly appreciated by Credit Suisse AG. The disbursement will immediately fund the company’s projects under development to ensure the product quality and construction progress committed to with customers, simultaneously strengthening its reputation among shareholders and investors.

Credit Suisse Group is a Swiss-multinational financial service holding company, headquartered in Zürich, that operates the Credit Suisse Bank and other financial services investments. The company is organized as a stock corporation with four divisions: Investment Banking, Private Banking, Asset Management, and a Shared Services Group that provides marketing and support to the other three divisions.

Similar to the previous offshore loans granted by Maybank, Malaysia’s largest financial services group and the leading banking group in Southeast Asia, VietinBank Filiale Deutschland, the first and only Vietnamese bank operating in Europe, and the Singapore-based GW Supernova Pte Ltd., Novaland had to prove strong financial strength, project development plans, and growth potential.

All of the loans from international credit institutions will support Novaland in diversifying its sources of capital, especially its access to international capital markets. It previously secured a credit facility of $50 million from GW Supernova Pte. Ltd., maturing in 36 months from the first day of drawdown, in December 2016. It included non-convertible and convertible borrowings of 40 per cent and 60 per cent, respectively.

In April this year, Novaland also received disbursement of $30 million. The 30-month syndicated loan came from Maybank Ho Chi Minh City, which is the agent and representative receiving and dealing with collateral, Maybank Labuan Malaysia, and VietinBank Filiale Deutschland.

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