CII Seeks 30-Day Extension for VND 2,500B Convertible Bond Issuance

Overview

Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII, HOSE) has requested a 30-day extension for the distribution period of its VND 2,500 billion convertible bond offering, citing the need to ensure a successful issuance and provide investors with additional time to arrange capital. The company also announced its 2026 business plan, targeting revenue of VND 3,720 billion and net profit of VND 225 billion.

Key Facts

• CII seeks to extend the distribution period for 25 million convertible bonds (code CII425002) by 30 days beyond the original deadline.
• The bonds have a face value of VND 100,000 each, totaling VND 2,500 billion in issuance value.
• Proceeds are earmarked for the HCMC-Trung Luong-My Thuan expressway expansion project.
• Conversion ratio is 1:8 (each bond converts into 8 common shares) at a conversion price of VND 12,500 per share, with 13 conversion tranches.
• The bond has a 15-year tenor, is unsecured, and does not include warrants.
• CII’s 2026 business plan targets revenue of VND 3,720 billion and net profit attributable to parent company of VND 225 billion.
• Toll revenue from infrastructure is expected to reach over VND 2,800 billion in 2026.

What Happened

CII’s Board of Directors passed Resolution No. 184/NQ-HDQT on April 28, 2026, approving a 30-day extension for the distribution of convertible bonds CII425002, originally registered under Certificate No. 46/GCN-UBCK issued by the State Securities Commission on March 10, 2026. The company stated the extension aims to ensure the offering’s success and support investors in arranging capital. CII is now seeking approval from the State Securities Commission for the extension.

The bond issuance, first announced earlier, involves 25 million convertible bonds at VND 100,000 each, with a total value of VND 2,500 billion. The conversion price is set at VND 12,500 per share, with a 1:8 conversion ratio. The original subscription period ran from April 1, 2026, to May 25, 2026, with payment due by June 2, 2026.

Separately, at its 2026 Annual General Meeting on April 28, CII approved its 2026 business plan with revenue of VND 3,720 billion and net profit of VND 225 billion. CEO Le Quoc Binh explained the conservative profit target is due to the real estate cycle, with some projects not expected to deliver and recognize profit until 2027-2028.

Market Context

CII shares (HOSE) have been under pressure amid a broader market downturn and concerns over the company’s debt levels and project execution timelines. The convertible bond extension may signal slower-than-expected investor demand, potentially weighing on sentiment. The 2026 profit target of VND 225 billion is modest relative to historical earnings, reflecting the lumpy nature of infrastructure and real estate revenue recognition.

Strategic Significance

The convertible bond issuance is critical for funding the HCMC-Trung Luong-My Thuan expressway expansion, a key infrastructure project expected to double CII’s toll revenue when operational in 2029. The extension suggests that investor appetite for the conversion terms (VND 12,500 per share) may be tepid, possibly due to current share price levels or market conditions. The conservative 2026 profit guidance underscores the company’s reliance on long-term infrastructure assets, with near-term earnings constrained by the real estate cycle.

What to Watch

• Approval of the 30-day extension by the State Securities Commission.
• Subscription results after the extended deadline, indicating investor demand.
• Progress on the Trung Luong-My Thuan expressway project and any updates on the 2029 operational target.
• CII’s Q2 2026 earnings release to gauge revenue and profit trajectory.
• Any changes in the conversion price or terms if the extension is not sufficient to attract investors.