CII Secures Record VND 27,000B Credit for HCMC-Mekong Expressway Expansion

Overview

CII, the Ho Chi Minh City Infrastructure Investment Joint Stock Company, has achieved a milestone in Vietnam’s infrastructure financing. On July 16, 2026, a consortium led by CII signed a credit agreement worth over VND 27,000 billion (approximately USD 1.08 billion) with six major banks to fund the expansion of the Ho Chi Minh City – Trung Luong – My Thuan expressway. This is the largest credit arrangement ever for a project involving a Vietnamese private enterprise.

Key Facts

• Total credit limit: VND 27,093.938 billion (over USD 1 billion).
• Six participating banks: Vietcombank (lead arranger, 50% share), VietinBank (20%), BIDV, Agribank, TPBank, and VPBank (7.5% each).
• Loan tenor: up to 18 years.
• The loan covers nearly 75% of the total project investment, estimated at VND 36,125 billion.
• The remaining ~VND 9,000 billion will come from equity and other legal sources of the investor consortium.
• CII holds a 55% stake in the consortium and plays a key role in capital mobilization.
• The expressway is over 96 km long, connecting HCMC with Long An, Tien Giang, and other Mekong Delta provinces.
• The expansion will widen the HCMC-Trung Luong section to 8-10 lanes and the Trung Luong-My Thuan section to 4-6 lanes, with construction expected from 2025 to 2028.

What Happened

On July 16, 2026, at the headquarters of the Ministry of Construction, the BOT Saigon – My Thuan Expressway Company Limited signed a credit contract with six credit institutions to finance the expansion of the HCMC – Trung Luong – My Thuan expressway. The signing marks a critical step in mobilizing capital for one of southern Vietnam’s most vital transport arteries.

According to the syndicated structure, Vietcombank will provide 50% of the total credit limit (about VND 13,547 billion), VietinBank 20% (VND 5,419 billion), and the remaining four banks each contribute 7.5% (over VND 2,032 billion each). CII stated that this is the largest credit facility ever arranged for a project with private sector participation. The project is implemented under a public-private partnership (PPP) model with a BOT contract.

Market Context

CII shares closed at VND 16,000 on July 16, 2026, on the HOSE exchange. The stock has been under pressure in recent months amid broader market weakness and concerns over the company’s debt levels. However, this landmark credit agreement could signal improved access to long-term financing for CII, potentially easing investor worries about its ability to fund large-scale infrastructure projects. The expressway expansion is expected to boost CII’s future toll revenue and strengthen its position in the infrastructure sector.

Strategic Significance

This financing deal underscores CII’s capability to secure large-scale, long-term funding from major Vietnamese banks, which is critical for its BOT project pipeline. The expressway is a key economic corridor linking HCMC to the Mekong Delta, a region with high traffic growth potential. By leading the consortium, CII positions itself to capture significant revenue from tolls and ancillary services once the expansion is completed. The project also aligns with the government’s infrastructure development priorities, potentially opening doors for further PPP projects.

What to Watch

• Disbursement progress and construction milestones over the next 12 months.
• CII’s Q3 2026 earnings report for updates on financial leverage and project-related costs.
• Traffic volume data on the existing expressway to gauge demand for the expanded capacity.
• Any additional equity raising or asset sales by CII to fund its 55% equity contribution.
• Regulatory changes affecting BOT toll rates or PPP frameworks in Vietnam.