CDC Approves VND 500B Agribank Credit Line, Plans VND 738.8B Convertible Bond Issue

Overview

Chuong Duong Corp (HOSE: CDC) has approved a maximum credit limit of VND 500 billion at Agribank’s Thu Duc branch and is seeking written shareholder approval to issue nearly 7.4 million convertible bonds to raise more than VND 738.8 billion. The bulk of the bond proceeds is earmarked for the Go Dau - Xa Mat expressway project, with a smaller tranche allocated to bank debt repayment.

Key Facts

• Board resolution approves a maximum credit limit of VND 500 billion at Agribank - Thu Duc branch, split into VND 400 billion for loans and VND 100 billion for guarantees and L/C.
• Collateral includes rights at 328 Vo Van Kiet, Ho Chi Minh City; land and assets at 242 Mai Anh Tuan, Ha Noi; apartment P5-6.06 at Vinhomes Central Park; land at 99/8 Dang Van Bi, Thu Duc; and future receivables from construction contracts.
• Convertible bond plan covers nearly 7.4 million bonds, unsecured and without warrants, with a 30-month tenor and a fixed coupon of 10.4% per year.
• Offering price is VND 100,000 per bond, targeting gross proceeds of more than VND 738.8 billion.
• Subscription ratio is 100:7, meaning 100 purchase rights entitle a shareholder to buy 7 bonds.
• VND 700 billion of proceeds is designated for a business cooperation contract (BCC) on phase 1 of the Go Dau - Xa Mat expressway; VND 38.8 billion is for bank debt repayment.
• Conversion is staged: up to 30% after 12 months, up to 50% after 24 months, and the remainder at maturity.

What Happened

Chuong Duong Corp disclosed a board resolution approving the credit limit and collateral package at Agribank’s Thu Duc branch. The VND 500 billion facility is divided between a VND 400 billion borrowing line and a VND 100 billion guarantee and L/C line. The company pledged a mix of real estate and receivables, including rights at 328 Vo Van Kiet in Ho Chi Minh City, land and attached assets at 242 Mai Anh Tuan in Ha Noi, apartment P5-6.06 at Vinhomes Central Park, land at 99/8 Dang Van Bi in Thu Duc, and receivables arising from construction contracts with project owners and partners.

Separately, the company has circulated a written shareholder ballot on the convertible bond issuance. The bonds carry a 30-month tenor, a fixed 10.4% annual coupon paid over consecutive three-month periods, no security and no attached warrants. Existing shareholders on the record date receive purchase rights at a 100:7 ratio. The company states that VND 700 billion of the proceeds will fund a BCC with a project enterprise for phase 1 of the Go Dau - Xa Mat expressway, covering the segment from Go Dau to Tay Ninh City (now Ninh Thanh ward), while VND 38.8 billion will repay bank loans.

Market Context

CDC trades on the Ho Chi Minh City Stock Exchange (HOSE) and closed at VND 20,200 on 21 September 2026. The company sits in the construction and materials sector, where balance-sheet capacity and access to long-tenor funding are central to winning and executing transport infrastructure work. The dual move, a bank facility plus a convertible bond, points to a capital structure being rebuilt around a single large pipeline project rather than around working-capital needs alone.

Strategic Significance

The strategic question for investors is whether CDC can convert a financing package into contracted revenue on the Go Dau - Xa Mat expressway. The BCC structure means the company is committing capital alongside a project enterprise rather than simply booking construction backlog, which shifts some execution and counterparty risk onto CDC’s own balance sheet. The 10.4% coupon is a meaningful cost of capital for a construction firm, and the staged conversion schedule (30% at 12 months, 50% at 24 months, the rest at maturity) creates a visible path to equity dilution if the project does not generate cash quickly enough to refinance. The VND 38.8 billion debt repayment tranche is small relative to the raise, so the issuance is best read as growth capital with a modest deleveraging component.

What to Watch

• Shareholder ballot results on the convertible bond issuance, including the record date for purchase rights.
• State Securities Commission and HOSE filings confirming the bond offering documents and any amendments to the 100:7 ratio.
• Project milestones and contract awards for phase 1 of the Go Dau - Xa Mat expressway.
• Disclosures on the BCC partner and the project enterprise’s capital contribution structure.
• Quarterly updates on CDC’s debt levels and interest expense relative to the 10.4% coupon.