CII Plans VND 6,720B Convertible Bond Rights Issue, Ex-Date Aug 26

Overview

Ho Chi Minh City Infrastructure Investment JSC (CII) announced a rights issue of nearly 67.2 million convertible bonds to existing shareholders, aiming to raise approximately 6,720 billion dong. The ex-rights date is set for August 26, 2026, with the offering priced at 100,000 dong per bond. This capital raise occurs amid a challenging financial performance, with H1 2026 net profit down nearly 48% year-on-year.

Key Facts

• CII will issue 67,198,529 convertible bonds (code CII426001) to existing shareholders at 100,000 dong per bond.
• The offering is expected to raise nearly 6,720 billion dong (approximately USD 268.8 million).
• Ex-rights date: August 26, 2026; record date: August 27, 2026.
• Rights are allocated at a 10:1 ratio; each shareholder gets one right per share, and 10 rights buy one bond.
• Bonds have a 25-year tenor, zero coupon for the first 12 interest periods, then a fixed rate of 14.5% per annum from period 13 onward.
• Rights can be transferred once; subscription period runs from September 10 to October 9, 2026.
• H1 2026 net profit was 96 billion dong, down 48% from H1 2025.
• Total debt at end-Q2 2026 reached 30,518 billion dong; financial borrowings stood at 24,534 billion dong.

What Happened

CII, listed on the Ho Chi Minh Stock Exchange (HOSE), announced a plan to issue convertible bonds to existing shareholders, as disclosed in a company filing. The bonds, with a 25-year maturity, carry a 0% coupon for the first three years (12 quarterly periods), after which the rate jumps to 14.5% per annum. The offering is structured as a rights issue, with each existing share receiving one right, and 10 rights entitling the holder to purchase one bond.

The company stated that any unsubscribed bonds, including fractional entitlements, will be offered to other investors through VietCap Securities, the lead underwriter. This capital raise comes as CII’s financial results show strain: H1 2026 net profit fell to 96 billion dong, a 48% decline year-on-year. Total assets rose 16% to 43,473 billion dong, but debt levels remain high, with financial borrowings increasing by over 3,200 billion dong since the start of the year.

Market Context

CII’s shares closed at 14,450 dong on August 19, 2026, reflecting a challenging period for the stock. The company operates in the infrastructure sector, with a focus on transport and water projects, and has been under pressure from high leverage and rising financial costs. The rights issue is seen as a move to strengthen its balance sheet, but the market’s reaction will depend on the terms and the company’s ability to improve profitability. The broader Vietnamese market has been volatile, with infrastructure stocks facing headwinds from rising interest rates and regulatory changes.

Strategic Significance

This capital raise is strategically important for CII as it seeks to refinance existing debt and fund ongoing infrastructure projects. The long tenor (25 years) and zero-coupon structure for the first three years provide temporary relief on interest expenses, but the subsequent 14.5% coupon is high, reflecting the company’s risk profile. The success of the offering will test shareholder confidence, especially given the recent profit decline. For long-term investors, the key is whether the raised capital will be deployed into projects that generate stable cash flows, potentially improving CII’s debt metrics and earnings trajectory.

What to Watch

• Subscription results: The number of bonds taken up by existing shareholders versus those placed with other investors.
• Q3 2026 earnings: Whether the profit decline continues or stabilizes.
• Use of proceeds: Any announcements on specific projects or debt repayment plans.
• Interest rate environment: Impact of the 14.5% coupon on future financial costs.
• Regulatory approvals: Any changes in the offering terms or timeline.