One of the many disadvantages of freshly joined enterprises like the case of Hana Development is the ability to approach a loan from banks and other financial entities due to the requirements about guaranteed assets, procedures, and disbursement process as well as the loan limit

Therefore, to meet the conditions of required capital for the operation, most businesses, including Hana Development, have the tendency to use convertible loans as another capital-raising option. However, to ensure the benefits of both the loaner and the borrower –  especially in the case of foreign loans – is a difficult problem to tackle as it is directly related to many matters, namely:

– Law on Convertible loans

– The demerits of using debt instrument

– Required procedures with competent authorities

– The requirement for the conversion

– Methods to determine the conversion ratio as well as the legal consequences relating to conversion ratio, especially ones that affect the type of business, business structure, and business management

– The worst possible situation is if both parties are non-compliant with the law and regulations, or one party decides to not follow the established agreement.

With vast experience in the construction and immovable property, CNC is chosen by Hana Development to structure transactions, counsel parties about foreign capital raising, convertible loans preparation and completion, and loan registration upon disbursement for the purpose of investing and conducting business in immovable properties at the center regions of Ho Chi Minh City

The success of this transaction is the basis for Hana Development to choose CNC as the legal counselor for projects at Thu Thiem New City, City Garden, Diamond Island, and many other projects