Property giant Hoang Anh Gia Lai Group has issued VND1.45 trillion (US$80.6 million) worth of convertible bonds through private offerings to both foreign and local investors.

The one-year bonds have a coupon rate of zero per cent each. Foreign investors were capped at holding no more than 49 per cent.

Funds raised from the issue will be used to finance hydroelectric and rubber plantation projects, as well as such real estate developments as the Kinh Te office and shopping centre complex and the Hoang Anh Incomex apartment project.

Funds would also be held as supplementary liquid capital, the company said.

HAG has reported profits of VND1.3 trillion ($72.2 million) in the first nine months of the year, a result it said was better than expected, with the third-quarter figure alone reaching VND490 billion ($27.2 million).

At its shareholders meeting last week, the company raised its total earnings target for the year from VND3.7 trillion ($205.6 million) to VND4.3 trillion ($238.8 million), and its profit target from VND1.1 trillion ($61.1 million) to VND1.3 trillion ($72.2 million).

The company said its property, hydroelectricity, and iron mining and processing projects, along with its traditional business lines such as wood and granite products, were expected to generate a combined profit of at least VND2.5 trillion next year. The company planned to launch 2,000 high-end apartments in the coming years.

At the recent shareholders meeting, Vu Huu Dien, director in charge of investment portfolio management at Dragon Capital Investment Fund, was appointed an HAG management board member.

HAG shares yesterday closed up 0.81 per cent on the HCM City Stock Exchange at VND125,000 ($6.94) per share.