|Rendition of the Sài Gòn 2 Bridge, a CII’s construction project. — Photo ciiec.com.vn |Viet Nam News
HÀ NỘI — The HCM Infrastructure Investment Joint Stock Company (sticker CII on the HCM Stock Exchange) signed a contract to issue US$20 million worth of convertible bonds with the Industrial Bank of Korea.
The bonds were set with a one-per-cent interest rate per year and a conversion price of VNĐ38,500 per share ($1.61).
By issuing $20 million of convertible bonds, coupled with another $40 million issued earlier in January 2017, CII has allowed their investors to convert all $60 million in bond value into CII stocks.
This means all CII’s 33.5 million shares on the market can be sold at the conversion price of VNĐ38,500 per share, and the company can make a surplus of VNĐ540 billion ($22.6 million) for their current shareholders.
According to existing regulations, the aforementioned surplus can not be used as dividends to shareholders, though CII’s board of directors can decide on how the money is to be spent.
According to CII’s CEO Lê Quốc Bình, the company sold 2.21 million shares between May 24 and 29, 2017, raking in over VNĐ90 billion ($3.76 million). CII’s stocks have risen from VNĐ25,000 last year to around VNĐ40,000 ($1.04 to $1.67) per share in the end of May.
Bình also said that the purpose of these transactions was to pay off bank debts, contribute to CII’s investment in other companies and purchase shares from CII Engineering and Construction (CII E&C). — VNS