An Gia guarantees subsidiary to borrow 250 billion VND credit package

An Gia's Board of Directors has agreed to fully guarantee the obligations of Western City Company Limited for a VND 250 billion credit facility at Tien Phong Commercial Joint Stock Bank. The credit facility is expected to be disbursed in the second quarter of 2024.

An Gia Real Estate Investment and Development Joint Stock Company (HoSE: AGG) has just announced the Resolution of the Board of Directors of the company on approving a credit package of 250 billion VND for its subsidiary.

Accordingly, An Gia's Board of Directors agreed to fully guarantee the obligations of Western City Company Limited (investor of Westgate project, Ho Chi Minh City) for a credit amount of up to VND 250 billion at Tien Phong Commercial Joint Stock Bank.

The loan is expected to be disbursed in the second quarter of 2024.

An Gia also commits to maintaining a minimum capital ownership ratio of 99% at Western City Company. The ownership maintenance period lasts at least until Western City completes all credit obligations at Tien Phong Commercial Joint Stock Bank.

The Board of Directors also approved An Gia's use of the company's assets with a total value of up to VND 250 billion to secure the above credit.

At the same time, authorize the Chairman of the Board of Directors to decide in detail the list of assets and other conditions related to the assets.

A corner of the Westgate project. Photo: AGG

This year, An Gia sets a target of net revenue of VND 1,600 billion and profit after tax for parent company shareholders of VND 250 billion, an increase of 43% compared to last year.

To achieve this goal, An Gia will continue to hand over and record revenue from the sale of remaining products at the Westgate (Binh Chanh, Ho Chi Minh City) and The Standard ( Binh Duong ) projects.

The company is also preparing resources to invest and implement The Gio Riverside project this year to contribute to realizing the business plan.

In the first quarter, An Gia achieved net revenue of nearly VND1,313 billion, 7 times higher than the same period last year. Profit after tax of parent company shareholders was more than VND200 billion, 43 times higher than the same period thanks to continued product handovers at Westgate (HCMC) and The Standard (Binh Duong).

The company representative shared about 2 potential land funds in District 8 and Thu Duc (HCMC) which are in the process of in-depth appraisal, expected to provide more than 4,000 products.

In addition, the company plans to implement The Gio Riverside project (Binh Duong) - which has been granted a credit limit of VND 2,000 billion, with the total project revenue potential reaching at least VND 8,200 billion.

As of March 31, the company's total assets reached nearly VND8,482 billion. Of which, inventory decreased by 39% compared to the beginning of the year, to VND1,229 billion, mainly concentrated in unfinished projects and decreased sharply during the process of the company handing over products to customers.

Financial debt at the end of the period reached VND 1,490 billion, equivalent to the beginning of the year. The debt/equity ratio was controlled at a safe level, only 0.48 times.

Source: https://baodautu.vn/an-gia-bao-lanh-cong-ty-con-vay-goi-tin-dung-250-ty-dong-d215747.html