LPBank commits VNĐ5 trillion loan to Hoàng Anh Gia Lai Group for green agriculture

Monday, Mar 04, 2024 21:12

At the signing ceremoney. — Photo toquoc.vn

LienVietPostBank (LPBank) and Hoàng Anh Gia Lai Group (HAGL) on Monday signed a VNĐ5 trillion (US$208.3 million) credit agreement, focusing on investment in green agriculture.

In the initial tranche, LPBank will disburse VNĐ3 trillion to assisst HAGL in planting and developing three key products including bananas, durian and pig farming. Additionally, The bank will point a representative to join HAGL’s Board of Directors to provide support and improve the company's management capacity and operational efficiency.

With LPBank’s financial backing, the Pleiku-headquartered group aims to increase the durian area to 2,000 hectares and the banana area to 9,000 hectares in 2024. By 2025, the group plans to expand the area of durian to 3,000 hectares and the banana area to more than 10,000 hectares. It is anticipated that by 2026, the areas dedicated to bananas, durians and other economically valuable trees will reach 25,000 hectares in Việt Nam, Laos and Cambodia.

Vice Chairman of LPBank Hồ Nam Tiến said: "The cooperation between LPBank and HAGL Group will help channel capital towards green and sustainable agriculturual development. With our own unique strengths, the two sides will work together to seek outstanding business solutions, create long-term value, and bring the best products to the community."

HAGL is expected to hold the annual shareholders’ meeting in April. In mid-February, the State Securities Commission approved the company’s plan of issuing 130 million shares worth VNĐ1.3 trillion in a private placement, of which LPBank is expected to purchase 50 million shares, equivalent to 4.73 per cent of HAGL’s equity.

HAGL’s shares (HAG) are trading around VNĐ12,800 a share. — VNS

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