CII State Shareholder HFIC Auctions Convertible Bond Rights Worth VND 6,720B

Overview

HFIC, a state shareholder of CII (HOSE: CII), has registered to sell all 27,416,105 rights to purchase convertible bonds CII426001, part of a bond issuance that could raise up to VND 6,720 billion for CII’s infrastructure projects. The auction, with a starting price of VND 3,490 per right, is scheduled from September 10 to October 6, 2026. This event highlights CII’s active capital-raising strategy amid a pipeline of large-scale transport and urban infrastructure developments.

Key Facts

• HFIC holds 27.4 million CII shares, equivalent to 4.08% of charter capital.
• Rights are offered at a starting price of VND 3,490 each, totaling nearly VND 95.7 billion.
• Each 10 rights allow purchase of 1 convertible bond at VND 100,000; full exercise would buy ~2.74 million bonds worth over VND 274 billion.
• The CII426001 bond issue has a maximum size of nearly VND 6,720 billion and a 25-year tenor.
• Proceeds are earmarked for CII’s investment programs and projects.
• Auction will be conducted via Agriseco and/or direct negotiation.
• CII’s recent projects include the VND 36,100 billion expansion of the TP.HCM – Trung Lương – Mỹ Thuận expressway, with CII holding a 55% stake.

What Happened

HFIC, formerly the Hồ Chí Minh City Urban Development Investment Fund, has announced it will auction its rights to subscribe to CII’s convertible bond issuance CII426001. The rights arise from HFIC’s shareholding of over 27.4 million CII shares. Instead of exercising the rights itself, HFIC will sell them publicly, with the transaction expected to occur between September 10 and October 6, 2026.

The bond issue is part of CII’s broader capital mobilization efforts. A previous convertible bond issue in April, valued at VND 2,500 billion, saw oversubscription at 324% of the offering size. The new issuance, with a 25-year tenor, is notably long for the corporate bond market. CII plans to use the funds for its infrastructure projects, including the expansion of the TP.HCM – Trung Lương – Mỹ Thuận expressway and other BOT and urban development initiatives.

Market Context

CII shares closed at VND 14,450 on September 7, 2026, reflecting a period of active project development. The company, listed on HOSE, is a veteran in BOT and transport infrastructure, with a growing portfolio that includes the National Highway 13 upgrade and the expressway expansion. The convertible bond issuance aligns with CII’s strategy to fund large-scale projects, and the market’s response to previous issuances suggests strong investor appetite for CII’s debt instruments.

Strategic Significance

For long-term investors, this auction signals CII’s reliance on convertible bonds as a key financing tool for its ambitious infrastructure pipeline. The 25-year tenor provides long-term capital stability, while the conversion feature offers potential equity upside. HFIC’s decision to sell its rights rather than exercise them may indicate a preference for liquidity over increased exposure, but it does not necessarily reflect negatively on CII’s prospects. The success of the auction will test market confidence in CII’s ability to execute its large-scale projects, particularly the expressway expansion, which is critical to the company’s growth trajectory.

What to Watch

• Results of the rights auction, including final pricing and subscription levels, expected by October 6, 2026.
• Progress on the TP.HCM – Trung Lương – Mỹ Thuận expressway expansion, including credit agreement drawdowns and construction milestones.
• CII’s quarterly earnings reports for 2026, which will show the impact of new project revenues and financing costs.
• Any regulatory approvals or updates on the TOD project at Hàng Xanh and other BT initiatives.
• Market reaction to the bond issuance, including secondary market trading of CII426001 after listing.