Hoang Anh Gia Lai to issue bonds

May 01, 2011 | 13:22

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The HCM City Stock Exchange-listed Hoang Anh Gia Lai Group plans to issue $200 million worth international bonds next month at a coupon of "less than 10 per cent," chairman Doan Nguyen Duc said.

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The money will be used to restructure the group's short – and medium-term dong debts that carry much higher interest rates than dollar loans and fund some of its projects, including rubber plantations in Cambodia, Laos, and Viet Nam.

The issue of the five-year bond has been approved by the State Bank of Viet Nam and the State Securities Commission, he said.

It will be underwritten by international financial services group Credit Suisse and listed on the Singapore Stock Exchange.

Duc expected the issue to be completed by mid-May.

The issue would help the company mobilise a large amount of money that it can hardly raise in this country while also enhancing its prestige, he said.

HAGL expects by 2012 to plant 51,000ha of rubber.

Its rubber research institute is expected to begin functioning this year-end, attracting researchers from Thailand and Malaysia where the rubber industry is more developed than in Viet Nam.

HAGL's annual shareholder meeting in HCM City on Tuesday agreed to keep this year's pre-tax profit target unchanged from last year's VND3 trillion ($144 million) due to the continued lull in the real estate market.

HAGL has interests in property, mining, rubber, and hydropower.

VNS

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