CII plans $297M convertible bond issue; BCM raises $30M secured bonds

Overview

CII (HOSE: CII) has announced a plan to issue nearly 67.2 million convertible bonds to existing shareholders, aiming to raise approximately VND 6,720 billion (about USD 297 million). The proceeds will be used for a business cooperation contract with BOT Cao tốc Sài Gòn - Mỹ Thuận to invest in the expansion of the HCMC - Trung Lương - Mỹ Thuận expressway. Separately, Becamex Group (HOSE: BCM) approved a private placement of up to 7,100 secured bonds, raising up to VND 710 billion to restructure short-term debt.

Key Facts

• CII will issue up to 67.2 million convertible bonds at VND 100,000 each, targeting gross proceeds of nearly VND 6,720 billion.
• The bonds have a 25-year tenor, with 0% coupon for the first 12 interest periods (3 months each), then 14.5% per annum thereafter.
• Rights offering ratio is 10:1; record date is 27/08/2026; subscription period runs from 10/09/2026 to 09/10/2026.
• Proceeds will fund a business cooperation contract (BCC) with BOT Cao tốc Sài Gòn - Mỹ Thuận for the HCMC - Trung Lương - Mỹ Thuận expressway expansion.
• CII’s total liabilities reached over VND 30,518 billion by end of Q2/2026, up 19.4% from the start of the year.
• BCM will issue up to 7,100 secured bonds, total value up to VND 710 billion, with a 3-year tenor.
• BCM’s bonds carry a fixed rate of 11% for the first two semi-annual periods, then reference rate plus 4.0% per annum.
• Collateral for BCM’s bonds includes urban land use rights totaling 80,959.9 m2, valued at over VND 1,016 billion.
• BCM will use VND 110 billion to repay a short-term loan at BIDV Bình Dương branch and VND 600 billion at Vietcombank Đồng Nai branch.

What Happened

CII’s board approved a plan to issue convertible bonds to existing shareholders, with a rights ratio of 10:1. The bonds are non-convertible into shares until conversion, carry no warrants, and are unsecured. The company expects to raise nearly VND 6,720 billion, which will be channeled into the BCC with BOT Cao tốc Sài Gòn - Mỹ Thuận for the expressway expansion project. This move comes as CII’s liabilities have grown significantly, reaching over VND 30,518 billion by mid-2026.

Becamex Group (BCM) also approved a private placement of up to 7,100 secured bonds, with a total value of up to VND 710 billion. The bonds are non-convertible, have a 3-year tenor, and are secured by urban land use rights. The proceeds will be used to repay short-term loans at BIDV and Vietcombank, part of a broader debt restructuring effort. The issuance is expected in Q3/2026.

Market Context

CII shares closed at VND 14,700 on 31/08/2026, while BCM closed at VND 43,350 on the same date. Both are listed on HOSE. The bond issuances come amid a broader trend of Vietnamese infrastructure and real estate companies seeking alternative financing channels as bank credit tightens and project capital needs rise. CII’s large convertible bond issue is notable given its size and the company’s existing debt load. BCM’s secured bond issue is relatively smaller and aimed at refinancing existing debt, reflecting a common strategy to manage liquidity.

Strategic Significance

For CII, the convertible bond issue is a strategic move to fund a major infrastructure project without immediate cash outlay, given the zero-coupon structure for the first three years. This allows the company to defer interest costs while the project generates revenue. However, the conversion feature could dilute existing shareholders over time. For BCM, the bond issue is part of a debt restructuring strategy to optimize its capital structure, using secured bonds to replace short-term bank loans with longer-term, fixed-rate funding. This could improve financial stability and reduce refinancing risk.

What to Watch

• CII’s Q3/2026 financial results to assess the impact of increased liabilities and project progress.
• BCM’s bond issuance completion and the actual interest rate set for periods after the first two.
• Regulatory approvals and market reception for both bond issues.
• Any changes in CII’s shareholder structure due to bond conversion.
• Updates on the HCMC - Trung Lương - Mỹ Thuận expressway expansion project timeline and funding.