CII Shifts VND 300B of Convertible Bond Funds to Repay 2026 Maturity

Overview

CII (HOSE), formally Công ty Cổ phần Đầu tư Hạ tầng Kỹ thuật Tp.HCM, has revised how it will deploy VND 2,500B raised from its public convertible bond issue, shifting VND 300B from an expressway project contribution to the repayment of bond principal maturing on 14 October 2026. The adjustment, approved under Board Resolution No. 207, touches the company’s flagship Tp.HCM–Trung Lương–Mỹ Thuận expressway expansion and its CIIB2426001 bond tranche, and matters to investors because it signals how CII is prioritizing near-term debt obligations against long-dated infrastructure capex.

Key Facts

• CII cut its planned capital contribution to Công ty TNHH BOT Cao tốc Sài Gòn – Mỹ Thuận from VND 1,151B to VND 851B, a reduction of VND 300B.
• The VND 300B is redirected to repay principal on bond tranche CIIB2426001, issued 14 October 2024 and maturing 14 October 2026.
• The repayment is scheduled for Q4 2026, per the adjusted plan.
• The convertible bond issue CII425002 (securities code CII426028) comprised 25 million bonds at VND 100,000 each, raising VND 2,500B in total.
• The bonds carry a 15-year tenor, no warrants and no collateral, with a planned 1:8 conversion ratio at VND 12,500 per share across 13 conversion windows from 25 January 2027 to 25 January 2039.
• Contributions to CII Invest (VND 300B) and the BOT business cooperation arrangement (VND 1,049B) remain unchanged.
• Board Resolution No. 207 took effect on 12 October 2026 and tasks the General Director with executing the revised documentation.

What Happened

In a disclosure citing Board Resolution No. 207, CII said it would reduce the portion of convertible bond proceeds earmarked for góp vốn into the Sài Gòn – Mỹ Thuận BOT project company, which is the vehicle for the Tp.HCM–Trung Lương–Mỹ Thuận expressway expansion. The contribution falls from VND 1,151B to VND 851B. The VND 300B difference will instead fund repayment of principal on the CIIB2426001 bond tranche, which was issued on 14 October 2024 and falls due on 14 October 2026.

The company attributed the change to optimizing capital efficiency against the actual pace of contributions to the project company, and to proactively securing cash for on-time bond repayment. CII stated that the adjustment does not affect the funding or the actual progress of the expressway expansion. The resolution authorizes the General Director to work with relevant parties on procedures and sign the revised documents, and took effect on 12 October 2026. The filing does not disclose the interest cost saved or any change to the project’s total investment.

Market Context

CII closed at VND 13,950 on 25 October 2026 on HOSE, trading close to the VND 12,500 conversion price set for the CII425002 convertible bonds — a level that matters because conversion only becomes economically attractive to bondholders above that threshold. The stock sits in the construction and materials sector with heavy real estate exposure through its infrastructure and property interests, a segment sensitive to interest rates and to the pace of public investment disbursement on southern transport corridors. The decision to prioritize bond repayment over project equity injection reflects a broader pattern among Vietnamese infrastructure issuers managing staggered maturities from the 2024–2026 bond cycle.

Strategic Significance

The reallocation is best read as balance-sheet housekeeping rather than a retreat from the expressway thesis. CII retains VND 1,049B in business cooperation capital and VND 851B in direct project contribution, so the bulk of its committed exposure to the Tp.HCM–Trung Lương–Mỹ Thuận expansion is intact. What changes is the sequencing: by matching bond maturity to available cash rather than assuming project-level drawdowns, CII reduces refinancing risk on an unsecured, uncollateralized tranche. For long-term holders, the key variable is whether the 15-year convertible structure converts into equity at VND 12,500 — a level near the current share price — which would dilute existing holders by roughly 8 shares per bond but relieve repayment pressure over time.

What to Watch

• Q4 2026 confirmation that the CIIB2426001 principal repayment was settled on or before 14 October 2026.
• Disclosure on actual capital contributions to the Sài Gòn – Mỹ Thuận BOT company through year-end 2026.
• Progress milestones on the Tp.HCM–Trung Lương–Mỹ Thuận expressway expansion, including site clearance and disbursement updates.
• The first convertible conversion window opening 25 January 2027, and any bondholder conversion notices ahead of it.
• CII’s Q3 2026 financial statements for cash position, short-term debt, and any further revisions to the VND 2,500B proceeds plan.