CII Rights Offer: 67.2M Convertible Bonds to Raise VND 6,720B

Overview

CII (HOSE: CII) has announced a rights offering of nearly 67.2 million convertible bonds to existing shareholders at a price of VND 100,000 per bond, aiming to raise approximately VND 6,720 billion. The record date for the rights entitlement is August 27, 2026. The company also plans to buy back 1,080 bonds before maturity for VND 108 billion.

Key Facts

• Rights offering of 67,199,999 convertible bonds (code CII426001) to existing shareholders.
• Offer price: VND 100,000 per bond; expected gross proceeds: VND 6,720 billion (approx. USD 268.8 million).
• Rights ratio: 10:1 (10 existing shares entitle the holder to buy 1 bond).
• Record date: August 27, 2026; subscription period: September 10 to October 9, 2026.
• Bond terms: 25-year maturity, interest 0% per annum for the first 12 quarterly periods, then 14.5% per annum.
• Conversion ratio: 1 bond converts into 10 common shares at VND 10,000 per share, in 24 tranches.
• Separate buyback: CII to repurchase 1,080 bonds (code CII12404) at VND 100 million each, total VND 108 billion; record date August 26, 2026; payment expected November 16, 2026.

What Happened

CII (Công ty Cổ phần Đầu tư Hạ tầng Kỹ thuật TP.HCM) announced the rights offering under Certificate No. 371/GCN-UBCK issued by the State Securities Commission on August 13, 2026. The convertible bonds, which are unsecured and without warrants, will be offered to existing shareholders. The rights are transferable once, with a transfer window from September 10 to October 6, 2026.

The company stated that the proceeds will be used for investment in its programs and projects. In a separate resolution, the board approved the early repurchase of 1,080 bonds from the CII12404 issue (CIIH2427004), originally issued on November 15, 2024, with a 3-year tenor and maturity on November 15, 2027. The buyback price is VND 100 million per bond, totaling VND 108 billion, funded from legal business sources.

Market Context

CII shares closed at VND 13,950 on August 14, 2026, on the HOSE. The rights offering is a significant capital raise for the infrastructure developer, which has been active in toll roads, water, and other infrastructure projects. The convertible bond structure, with a low initial coupon and conversion feature, may appeal to investors seeking equity upside, but the long tenor and back-loaded interest rate (14.5% after the first 12 periods) suggest a high cost of capital if not converted. The buyback of the existing bond issue indicates active liability management.

Strategic Significance

This capital raise is part of CII’s broader strategy to fund infrastructure investments, likely in its core toll road and urban infrastructure segments. The convertible bond structure allows the company to defer cash interest payments initially, but the eventual 14.5% coupon is high, reflecting the risk profile. The conversion price of VND 10,000 per share is below the current market price of VND 13,950, implying potential dilution for existing shareholders if conversion occurs. For long-term investors, the success of the offering and the use of proceeds will be critical to assessing the impact on earnings and leverage.

What to Watch

• Subscription results: Announcement of actual take-up by shareholders after the October 9, 2026 deadline.
• Use of proceeds: Disclosure of specific projects or programs funded by the VND 6,720 billion raised.
• Conversion activity: First conversion tranche expected after the bond issuance; monitor for early conversion and dilution.
• Buyback completion: Confirmation of the CII12404 bond repurchase and cancellation by November 16, 2026.
• Financial statements: Q3 2026 results to see impact of the capital raise on cash position and debt levels.