HAGL Agrico has paid off all debts to Hoang Anh Gia Lai, receiving back more than 32,500 hectares of rubber and oil palm land.

The amount HAGL Agrico paid was 4,228 billion VND. Of which, the company paid the direct loan to BIDV of 2,094 billion VND and paid the debt to HAGL related to HAGL 2016 bonds of 2,134 billion VND.

On December 31, 2024, Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico - code: HNG), a business operated by Thaco, announced information about completing debt repayment according to the Tripartite Commitment Agreement between Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV), HAGL Agrico and Hoang Anh Gia Lai Joint Stock Company (HAGL - code: HAG).

Accordingly, the amount HAGL Agrico paid was 4,228 billion VND. Of which, the company paid the direct loan to BIDV of 2,094 billion VND and paid the debt to HAGL related to HAGL 2016 bonds of 2,134 billion VND.

Thus, by December 31, 2024, HAGL Agrico has paid all debts under the Agreement and no longer has any debt with HAGL.

The company received the assets in 4 installments.

In the first phase, the company received land use rights and exploitation rights for 5,357 hectares of oil palm on a total area of 9,470 hectares, offices, oil palm factories, and thermal power plants owned by HA Andong Meas.

Phase 2, receiving land use rights and exploiting 9,231.9 hectares on an area of 9,996.9 hectares of rubber of HA Attapeu (8 covers).

Phase 3, receiving land use rights and exploiting 4,733.01 hectares of rubber and 3,155.79 hectares of oil palm in Attapeu province of Hoang Anh Attapeu Company (12 covers).

In the fourth phase, the company is in the process of completing procedures with BIDV to receive back assets including land use rights and rubber exploitation rights on an area of 4,852.74 hectares owned by HA Quang Minh, land use rights and rubber exploitation rights on an area of 1,960.9 hectares owned by Heng Brothers Company Limited, and land use rights and rubber exploitation rights on an area of 3,283.7 hectares owned by CRD Company Limited.

Thus, HAGL Agrico will receive a total of more than 32,500 hectares of industrial crop land, including more than 8,500 hectares of oil palm and more than 24,000 hectares of rubber.

Previously, Mr. Doan Nguyen Duc - Chairman of Hoang Anh Gia Lai Group confirmed that HAGL Agrico had paid more than 1,000 billion VND to HAG to pay part of the principal of the bond issued by the company to BIDV at the end of 2016.

Specifically, the HAGLBOND16.26 bond lot issued by HAG, has a value of 6,596 billion VND, interest rate of 9.7%/year, expected to mature on December 30, 2026. BIDV Bank is the bondholder of this bond lot.

In the announcement on December 26, HAG said it had paid VND206 billion to pay part of the principal of this bond lot. On December 30, the Company continued to pay an additional VND824 billion, bringing the total principal paid for the above bond lot to VND1,030 billion.

Of which, 1,000 billion comes from the amount HAGL Agrico paid to HAG according to the tripartite agreement, the remaining due amount is 766 billion VND that has not been paid due to the failure to liquidate unprofitable assets. This amount is expected to be paid in the second quarter of 2025.

Regarding HAGL Agrico's business results, in the third quarter of 2024, HAGL Agrico's revenue reached 141 billion VND, down 12% over the same period last year.

HAGL Agrico's revenue continued to be lower than its cost of capital, causing the company to have a gross loss of VND46.6 billion, resulting in a loss after tax of VND182 billion. In the first 9 months of the year, HAGL Agrico's accumulated loss after tax was nearly VND546 billion.

As of September 30, 2024, HAGL Agrico has total assets of VND 15,948 billion. The company has accumulated losses of VND 8,648 billion. Owner's equity is VND 1,859 billion while liabilities are VND 14,089 billion.

On the stock market, in the trading session on January 2, HNG shares were recorded to increase to the ceiling price of 7,000 VND/share, up 14.8% and there were no sellers.