Hoang Anh Gia Lai Group (HAG) of Mr. Duc has just announced that Gia Lai Livestock Joint Stock Company, a subsidiary of HAG, has fully paid the amount of 750 billion VND (including the entire principal debt of 586.790 billion VND and a part of the interest debt within the term of 163.209 billion VND) to Vietnam Export Import Commercial Joint Stock Bank (Eximbank) to pay off the loan of two credit contracts signed since 2014 according to the Notice of interest debt exemption on October 20 from Eximbank.

Notably, in this deal, Eximbank has exempted the company from more than VND1,424 billion in interest (including part of the interest due, all overdue interest and late interest penalty). Gia Lai Livestock JSC is owned by HAG with 88.03% of its charter capital.

In fact, the State Bank of Vietnam (SBV) has regulated and guided credit institutions to implement the exemption and reduction of interest rates for businesses in Circular 39/2016/TT-NHNN (Circular 39).

Article 21 of Circular 39, credit institutions have the right to decide to exempt or reduce loan interest and fees for customers according to the internal regulations of the credit institution.

In addition, Circular 02/2023/TT-NHNN dated April 23 of the State Bank of Vietnam regulating debt repayment terms and maintaining debt groups to support customers in difficulty also has regulations on restructuring debt repayment terms for the principal and/or interest balance of the debt.

The fact that Mr. Duc's company was exempted from interest payments by the bank, amounting to thousands of billions of dong, is no different than being granted a new credit line.

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Bau Duc's assets have skyrocketed over the past month. (Photo: HAG).

The unexpected debt write-off from Eximbank will be reversed by HAG into its 2023 profit because the company had previously recorded a loss in its business results. Therefore, HAG's estimated profit this year will reach VND2,150 billion, double the annual plan.

That is also one of the reasons why HAG's stock price has continuously increased over the past month, along with HAG becoming a comprehensive strategic partner of LPBank.

Closing the trading session last weekend, HAG stock price reached 13,050 VND/share, up more than 63% compared to the time Eximbank announced to waive more than 1,400 billion VND in interest (October 20).

The value of shares held by Chairman Doan Nguyen Duc increased by VND1,600 billion to VND4,175 billion. Mr. Duc is currently the largest shareholder at HAG with a holding ratio of 34.5% of the company's capital.

According to the consolidated financial report for the third quarter of 2023, by the end of the quarter, the group still had interest expenses to pay of VND 4,830 billion.

The Group currently has a debt of more than VND 7,700 billion (of which short-term debt is VND 3,900 billion) including bank loans and bond loans (slightly decreased compared to the beginning of 2023). Of which, short-term loans at Sacombank are VND 717 billion, short-term loans at TPBank are VND 675 billion.

Regarding long-term loans, HAG owes Eximbank 587 billion VND, Lao-Vietnam Joint Venture Bank 265 billion VND, TPBank 161 billion VND and Sacombank 77 billion VND.

At the investor meeting on December 15, Mr. Duc said the company is "thoroughly paying off debt by all means" and is determined to pay off all debts by 2025.