Mr. Duc's company unexpectedly paid more than 1,000 billion VND in bond debt in 2 days

Hoang Anh Gia Lai Joint Stock Company (HAGL), chaired by Mr. Doan Nguyen Duc (Bau Duc), has just reported on the payment of principal and interest of the bond lot of which BIDV is the bondholder.

Accordingly, in just the last 2 days of the year, HAGL issued two consecutive announcements updating the progress of debt payment for the HAGLBOND16.26 bond lot.

The first time, on December 29, the company said it had paid 206 billion VND in principal. After payment, the total principal debt of bonds that HAGL still owes is 1,590 billion VND.

The reason for not paying the remaining amount mentioned above was stated by HAGL as "not having collected enough money from the debt of Hoang Anh Gia Lai International Agricultural Joint Stock Company - HAGL Agrico (HNG) and not having been able to liquidate some of the company's unprofitable assets".

In the announcement today, December 30, HAGL said it had just paid an additional VND824 billion in principal debt. Thereby reducing the principal debt to VND766 billion. Notably, stating the reason for not paying the remaining amount, HAGL did not mention HNG's debt anymore, but said it was because "some of the company's unprofitable assets have not been liquidated".

The expected payment time for the remaining portion mentioned above is committed by HAGL to take place in the second quarter of 2025.

After paying more than 1,000 billion VND, how much does Mr. Duc's company still owe?

The HAGLBOND16.26 bond lot was issued by Bau Duc Company since the end of 2016, worth 6,596 billion VND, with an interest rate of 9.7% per year, expected to mature at the end of 2026.

The total principal amount paid by HAGL in the last 2 days of the year is 1,030 billion VND. Thus, HAGL still owes a part of the principal of 766 billion VND and more than 3,621 billion VND in interest.

According to the financial statement explanation, bond debt still accounts for the majority of the loan structure of Mr. Duc's company.

However, not only did the company borrow a lot of money, in fact, it also had a large loan from HAGL Agrico. This company was formerly Hoang Anh Gia Lai Rubber Joint Stock Company, then transferred to the company of Mr. Tran Ba ​​Duong - Chairman of Thaco.

After a period of overlapping relationships, by August 2022, HAGL Agrico, chaired by Mr. Tran Ba ​​Duong, and Hoang Anh Gia Lai, chaired by Mr. Duc, committed to separating mortgaged assets and debt repayment obligations to BIDV.

At the end of June 2024, HAGL Agrico's financial report still recorded that it was borrowing VND 1,123 billion from Mr. Duc's HAG. At the same time, this debt was also mentioned by HAGL when explaining the reason for the delay in paying the bond debt. However, in the latest announcement on December 30, this debt was no longer mentioned by HAGL.