HAGL Agrico has paid off a staggering 4,228 billion VND, which has allowed the company led by Bầu Đức to settle its bond debt for the HAGLBOND16.26 issue totaling 2,314 billion VND and to pay back a direct loan from Hoàng Anh Gia Lai at BIDV amounting to 2,094 billion VND.
Remaining principal debt: 766 billion VND
The International Agricultural Company Hoàng Anh Gia Lai (HAGL Agrico – stock code: HNG) has announced that it has fully paid all debts as per the agreement and has no outstanding debts with Hoàng Anh Gia Lai (stock code: HAG), led by Chairman Đoàn Nguyên Đức (Bầu Đức).
Specifically, HAGL Agrico has completed the payment of 4,228 billion VND as per a three-party agreement with BIDV (stock code: BID) and Hoàng Anh Gia Lai. This includes a direct loan repayment of 2,094 billion VND to BIDV and a debt payment to HAG related to the bond issue HAGLBOND16.26 amounting to 2,314 billion VND.
HAGL Agrico has successfully paid 4,228 billion VND to HAG.
The HAGLBOND16.26 bond was issued on June 30, 2016, with a 10-year term and a total value of 6,596 billion VND. This is a non-convertible bond without warrants, secured by assets. The issuance interest rate was 9.7% per annum, with interest payments made every three months, followed by a floating interest rate, and the sole bondholder being BIDV.
As of September 30, Hoàng Anh Gia Lai had to pay bond interest for the HAGLBOND16.26 issue amounting to 136.7 billion VND. However, the cumulative overdue interest as of September 30, 2024, had exceeded 3,486 billion VND. The cumulative overdue principal as of September 30, 2024, was 1,015 billion VND. Thus, the total overdue interest and principal for the HAGLBOND16.26 bond reached over 4,501 billion VND as of September 30.
According to HAG, the delay in payment was due to not collecting sufficient funds from debts owed by HAGL Agrico, which has now agreed on a repayment schedule involving three parties and has yet to liquidate certain non-performing assets.
Meanwhile, HAG announced that on December 26, the company repaid 206 billion VND of the principal for the HAGLBOND16.26 issue. By December 30, the company continued to pay an additional 824 billion VND, bringing the total principal repayment for this bond issue to 1,030 billion VND.
This amount was paid by HAGL Agrico to HAGL as per the three-party agreement. HAG indicated that the remaining 766 billion VND of overdue principal is due to the liquidation of non-performing assets not being completed. The payment for the remaining amount is expected in the second quarter of this year.
In addition to the overdue principal, on December 29, 2024, HAG also delayed the payment of nearly 3,622 billion VND in interest for the HAGLBOND16.26 issue.
How is the business performing?
After HNG has completed the payment of 4,228 billion VND to HNG, HAGL Agrico will receive assets across four phases totaling over 32,500 hectares of industrial crops, including over 8,500 hectares of oil palm and more than 24,000 hectares of rubber.
HAGL Agrico originated from Hoàng Anh Gia Lai Rubber Company, which was established as part of Hoàng Anh Gia Lai’s restructuring program in 2010. In April 2015, the company was renamed to Hoàng Anh Gia Lai International Agricultural Company, and it merged with the Central Highlands Dairy Cow Company to expand its business operations. On July 20, 2015, HAGL Agrico was listed on HoSE.
In early 2021, HAGL Agrico was transferred to billionaire Trần Bá Dương’s company, who is the Chairman of Trường Hải Automobile Company (Thaco). By August 2022, Đoàn Nguyên Đức transferred the chairmanship of HAGL Agrico to Trần Bá Dương.
According to management reports, as of June 30, 2024, Thaco holds 27.63% of HNG’s equity, while Trân Oanh Trading and Manufacturing LLC holds 4.96%. Both of these entities are chaired by Trần Bá Dương. Additionally, Mr. Dương directly owns 5.48% of HNG. Meanwhile, HAG still maintains an 8.24% stake in HNG.
In the third quarter of 2024, HAGL Agrico reported revenues of 141 billion VND, a 12% decrease compared to the same period last year. The company’s revenues continue to fall short of its costs, resulting in a gross loss of 46.6 billion VND, increasing the net loss to 182 billion VND.
For the first nine months of 2024, HAGL Agrico incurred a net loss of nearly 546 billion VND. As of September 30, 2024, HAGL Agrico had total assets amounting to 15,948 billion VND, with a cumulative loss of 8,648 billion VND. Shareholders’ equity stood at 1,859 billion VND, while total liabilities reached 14,089 billion VND.
On the stock market, HNG’s shares were delisted from HoSE on September 6, 2024, and began trading on Upcom from September 18, 2024, with a reference price of 4,600 VND per share.
Source: Duy Quang