HAGL SIGNED A FACILITY AGREEMENT WITH LPBANK TO PRIORITIZE GREEN AGRICULTURE DEVELOPMENT

On March 4, 2024, Lien Viet Post Commercial Joint Stock Bank (LPBank) and Hoang Anh Gia Lai Group (HAGL Group) officially signed a Facility Agreement of VND 5,000 billion, prioritizing investment in green agriculture. This activity is based on LPBank's mission of developing green credit - green banking.

Representatives of the two units' leaders performed the cooperation signing ceremony

Specifically, phase 1, LPBank will disburse 3,000 billion VND to promote investment in new planting, care and development of 3 key products including: bananas, durian and pig farming. At the same time, LPBank will send representatives to join the Board of Directors of HAGL Group to directly support, advise, and improve the Company's management capacity and operational efficiency.

With capital support from LPBank, HAGL Group sets a development goal in the new period: increasing the durian area to 2,000 hectares and banana area to 9,000 hectares in 2024. In 2025, the Group continues to invest to increase the area. Durian area increases to 3,000 hectares and more than 10,000 hectares of bananas. It is expected that by 2026, the area planted with bananas, durians and other economically valuable trees will increase to 25,000 hectares in Vietnam, Laos and Cambodia.

In parallel with developing the durian - fruit tree segment, HAGL Group will continue to expand its clean land fund, prioritizing investment in improving infrastructure, packaging plants, packaging... in the direction of applying technology and production methods. advanced production to improve productivity and product quality, while contributing to transforming the labor structure in agriculture.

The VND 5,000 billion loan package not only helps HAGL Group expand production and business in a sustainable direction but also helps LPBank realize its green credit growth goal.

With the advantage in the agricultural segment of large land area, HAGL Group has many favorable opportunities to develop large-scale connected farms. In addition, the land in the highlands of Gia Lai and Laos, with good climate and soil, helps HAGL Group's fruit products have a delicious taste and the ability to grow out of season for high yields. In particular, durian fruit not only brings great profits, but is also loved by Asian customers, while European and American countries have also begun to import it.

“In China, it is known as a large durian consumer market, but currently only 5% of the population consumes it due to the high price (currently the price of durian in China is about 500,000 VND/kg). Thus, the market potential for durian consumption in China is still very large," HAGL Group leaders predicted.

Sharing about the cooperation with HAGL Group, Mr. Ho Nam Tien - Vice Chairman of the Board of Directors and General Director of LPBank affirmed: "The cooperation between LPBank and HAGL Group will help green capital shift towards sustainable development in the future." agriculture, and with their own strengths, the two sides work together to seek outstanding business solutions, create long-term value, and bring the best products to the community."

The VND 5,000 billion loan package not only helps HAGL Group expand production and business in a sustainable direction, but also helps LPBank achieve its green credit growth goal, increasing resources by exploiting and cross-selling the bank's products. Through the sale of seedlings, production and distribution of products from fruit trees and pork to the market, it is also a bridge to promote the import and export of durian fruit... bringing in a large source of foreign currency.

Proactive and ready to accompany businesses, LPBank also builds standards for evaluating and monitoring product effectiveness, thereby replicating the model to ensure capital is used for the right purpose, bringing benefits. for businesses in the direction of sustainable agricultural and rural development, in accordance with the banking industry development strategy associated with the task of developing green credit - green banking set by the State Bank (SBV).

Previously, on November 18, 19 and 20, 2023, LPBank's board of directors led by Mr. Ho Nam Tien visited investment projects in Vietnam, Laos and Cambodia of HAGL Group. After this visit, LPBank and LPBS Securities Company decided to invest in HAGL Group through a plan to issue private shares to mobilize 1,300 billion VND.