CII Extends Convertible Bond Offering to June 2026 for Expressway Expansion

Overview

CII (HoSE: CII) has extended the offering period for its 25 million convertible bonds (code CII425002) to June 25, 2026, from the original June 2, 2026 deadline. The bonds, priced at VND 100,000 each, aim to raise VND 2,500 billion for the expansion of the HCMC-Trung Luong-My Thuan expressway. The extension provides additional time for investors to participate in this capital raise, which is critical for CII’s infrastructure growth strategy.

Key Facts

• CII is offering 25 million convertible bonds (code CII425002) with a 15-year tenor.
• Each bond has a face value of VND 100,000, for a total issuance value of VND 2,500 billion (approximately USD 100 million).
• The bond conversion ratio is 1:8, meaning each bond converts into 8 common shares at a conversion price of VND 12,500 per share.
• Conversion will occur in 13 tranches, with the first tranche expected after the bond issuance.
• The minimum subscription amount is VND 100,000 per investor.
• The subscription period runs from April 1, 2026 to May 25, 2026, with payment now due by June 25, 2026.
• Proceeds are earmarked for the HCMC-Trung Luong-My Thuan expressway expansion project.
• CII’s 2026 business plan targets revenue of VND 3,720 billion and net profit of VND 225 billion.

What Happened

CII announced an extension of the payment deadline for its convertible bond offering, moving it from June 2, 2026 to June 25, 2026. The bonds, registered under certificate No. 46/GCN-UBCK issued by the State Securities Commission on March 10, 2026, are unsecured and non-warrant. The company stated that the extension is to accommodate investor demand and ensure a successful capital raise.

At the annual general meeting on April 28, 2026, CEO Le Quoc Binh explained that the company’s conservative 2026 profit target of VND 225 billion reflects the real estate cycle, with several projects not expected to deliver revenue until 2027-2028. The expressway project, however, is a key growth driver, with toll revenue expected to exceed VND 2,800 billion in 2026 and potentially double revenue once operational in 2029.

Market Context

CII shares have been under pressure due to the broader market downturn and sector-specific headwinds in real estate and infrastructure. The company’s stock trades on HoSE and has seen volatility amid concerns over debt levels and project timelines. The convertible bond offering, if fully subscribed, will strengthen CII’s balance sheet and provide funding for its largest infrastructure project. The extension suggests that initial demand may have been slower than expected, but the company remains confident in the project’s long-term value.

Strategic Significance

The convertible bond issuance is a strategic move to finance the expansion of the HCMC-Trung Luong-My Thuan expressway, a key north-south corridor in Vietnam’s Mekong Delta region. Once completed, the project is expected to significantly boost CII’s toll revenue and overall profitability. The conversion feature allows bondholders to participate in equity upside, aligning investor interests with the company’s long-term growth. The extension indicates CII’s commitment to completing the capital raise, which is essential for maintaining project timelines and avoiding delays.

What to Watch

• Subscription results by the new deadline of June 25, 2026, and whether the full VND 2,500 billion is raised.
• Conversion schedule and any early conversion by bondholders, which could dilute existing shareholders.
• Progress on the expressway expansion project, including construction milestones and expected completion date.
• CII’s Q2 2026 earnings report to assess revenue and profit trends against the full-year target.
• Any further capital raising activities or project announcements from CII.