HAGL Raises VND 2,000 Billion via Domestic Bond Issuance for Agriculture Expansion

Overview

Hoang Anh Gia Lai Joint Stock Company (HOSE: HAG) has successfully raised VND 2,000 billion through a domestic bond issuance, with the funds allocated to capital contributions for agricultural joint ventures. The company also announced ambitious 2026 targets of VND 8,624 billion in revenue and VND 4,202 billion in net profit, alongside plans to expand coffee, mulberry, and durian plantations.

Key Facts

• HAGL issued 20,000 bonds (code HAG12601) on April 29, 2026, with a face value of VND 100 million each, totaling VND 2,000 billion.
• The bonds have a 36-month tenor, maturing on April 29, 2029, and are secured by a payment guarantee from Orient Commercial Bank (OCB) for VND 2,135 billion (including principal and first-period interest).
• Proceeds will be used for capital contributions to joint ventures with four companies: CP Chan nuoi Gia Lai, CP Gia suc Lo Pang, CP Phat trien Nong nghiep Stung Treng, and CP Dau tu Savannakhet.
• 2026 targets: revenue of VND 8,624 billion (+16% YoY) and net profit of VND 4,202 billion (nearly double 2025’s VND 2,100 billion).
• In 2025, HAGL reported revenue of VND 7,440 billion (+29% YoY) and net profit of VND 2,100 billion (2.1x prior year), with fruit contributing 77% of revenue.
• HAGL plans to plant 7,000 ha of coffee, 1,000 ha of mulberry, and 700 ha of durian in 2026, targeting a total coffee area of 20,000 ha (15,000 ha Arabica, 4,000 ha Robusta, 1,000 ha Liberica).
• The board proposes a 5% cash dividend (VND 500/share) for 2026, subject to shareholder approval at the 2027 AGM.

What Happened

HAGL announced the successful issuance of VND 2,000 billion in domestic bonds on April 29, 2026, as disclosed in a filing to the State Securities Commission and Ho Chi Minh City Stock Exchange (HOSE). The bonds are plain vanilla, non-convertible, non-warrant, and secured by a payment guarantee from OCB. The 36-month bonds carry a fixed-plus-floating interest rate.

The proceeds are designated for capital contributions to four agricultural joint ventures: CP Chan nuoi Gia Lai, CP Gia suc Lo Pang, CP Phat trien Nong nghiep Stung Treng, and CP Dau tu Savannakhet. This aligns with HAGL’s strategy to expand its agricultural footprint.

Separately, at the 2026 Annual General Meeting on April 17, shareholders approved ambitious 2026 targets: revenue of VND 8,624 billion (+16% YoY) and net profit of VND 4,202 billion (nearly double 2025’s VND 2,100 billion). The company also outlined plans to expand coffee, mulberry, and durian plantations, with a long-term goal of 20,000 ha of coffee.

Market Context

HAGL shares (HOSE: HAG) have been volatile amid the company’s restructuring and pivot to agriculture. The successful bond raise provides near-term liquidity for expansion, but the company’s high leverage remains a concern. The 2025 results showed strong growth, with fruit sales driving 77% of revenue. The broader agricultural sector in Vietnam has benefited from rising global demand for coffee and durian, but input cost inflation and weather risks persist.

Strategic Significance

HAGL’s bond issuance and aggressive expansion plans signal a strategic shift toward large-scale, export-oriented agriculture, particularly coffee and durian. The company aims to become a major player in Vietnam’s coffee industry, targeting 20,000 ha by 2028. The joint venture structure allows HAGL to share risk and leverage local expertise. However, execution risk is high given the capital-intensive nature of plantation development and the long gestation period for coffee and durian trees. The 2026 profit target implies a net margin of nearly 49%, which appears ambitious given historical margins.

What to Watch

• Q2 2026 earnings release to assess progress toward revenue and profit targets.
• Updates on the joint ventures’ operational performance and capital deployment.
• Coffee and durian prices in global markets, as they directly impact HAGL’s revenue.
• Any further bond issuances or equity raises to fund the 20,000 ha coffee plan.
• Dividend policy changes at the 2027 AGM if profit targets are met.