A part of the Hà Nội Highway in HCM City, a project in which the HCM City Infrastructure Investment JSC is the main contractor. Photo nhipcaudautu.vn
HÀ NỘI — The HCM City Infrastructure Investment JSC (CII) has settled nearly VNĐ903 billion (US$40 million) worth of convertible bonds.
The bond buyback was done on Monday, CII said in a statement that was published on Tuesday. The bond was due at the end of 2019.
CII in 2017 issued $60 million worth of convertible bonds to the South Korean holder Rhinos Vietnam Convertible Bond Private Investment Fund No 1 at a per-annum interest rate of 1 per cent.
The South Korean investor would be able to convert the bonds into 33.5 million CII treasury shares for VNĐ38,500 per share.
The Vietnamese firm had estimated it could collect VNĐ540 billion premium from the deal.
Monday's deal cut CII’s total outstanding loans by more than VNĐ900 billion, the company said.
Following the deal, CII has to settle another $20 million worth of bonds, which would be due at the end of 2022, if the South Korean fund decides not to make the conversion.
In 2019, CII had a total of nearly VNĐ2.6 trillion worth of long-term due liabilities, including financial loans and bonds.
As of September 30, 2019, the company had settled nearly VNĐ1.1 trillion worth of loans.
In Tuesday's statement, CII also said the company had beat this year’s post-tax profit target of VNĐ932 billion, which was approved at the annual shareholder's meeting in April 2019.
In the third quarter of 2019, the company recorded nearly VNĐ307 billion worth of post-tax profit, a big jump from 2018’s third-quarter figure of VNĐ3.3 billion.
The company in 2019 sold big stakes in its member companies and real estate projects, which brought VNĐ1 trillion and VNĐ455 billion to the total revenue.
CII shares (HoSE: CII) dropped 2.6 per cent to trade at VNĐ22,700 per share on Wednesday. — VNS