CII leaders said that in order to carry out investment activities, CII needs an amount of 8,100 billion dong, including repayment of principal and interest, project investment and dividend payment. Therefore, the enterprise plans to raise capital through the issuance of bonds and loans, recovery of investment principal and dividends received.
Ho Chi Minh City Infrastructure Investment Joint Stock Company (Ticker: CII) has just announced information about the private issuance of bonds up to VND 600 billion. The expected time to issue is in August 2020 or depends on the actual situation to authorize the Chairman of the Board to decide.
The purpose of the issuance is to increase the scale of working capital and invest in projects.
The bond has par value of 1 billion dong, expected term is 36 months. Issuing price is equal to 100% of par value. The maximum nominal interest rate is 11% / year.
Bonds are non-convertible, not attached to warrants, have a fixed interest rate and are guaranteed by assets.
Collateral is the use of shares and other assets owned by CII, subsidiaries, affiliates, or third parties to secure payment obligations.
Previously, on July 28, CII completed a private placement of 800 billion dong of bonds. The bond also has a term of 36 months.
The purpose of raising capital and collateral is similar to the next 600 billion issuance.
As of June 30, CII has a total of VND 15,385 billion in total loans, accounting for half of assets and 1.8 times more than equity.
Source: CII’s second quarter consolidated financial statements.
In which, CII has 4,726 billion dong of long-term borrowings and 1,860 billion dong of bonds payable in the next 12 months. The remaining loans are mainly from banks.
Sharing at the 2020 annual general meeting of shareholders, CII leaders said that in order to carry out investment activities, CII needs a capital amount of 8,100 billion VND, including repayment of principal and interest, project investment and pay dividends.
Accordingly, the company plans to raise capital through sources such as issuing bonds and loans, recovering investment principal and receiving dividends.
CII leaders added that the COVID-19 translation has narrowed the source of foreign credit, foreign funds prioritize maintaining high cash instead of seeking new investment opportunities. The domestic credit capital is also tightened to minimize the possibility of bad debts arising from epidemics.
Stemming from the very difficult capital mobilization, CII decided each time it would mobilize a large amount of capital trillions dong, instead of only mobilizing a few hundred billion dong as before.
Regarding the business situation, by the end of the second quarter, CII reached 652 billion dong of net revenue, up 43%, but the profit after tax halved to 116 billion dong.
Accumulated 6 months, CII reached 1,124 billion net revenue, 391 billion profit after tax; increased by 9% and 46% respectively over the same period in 2019.
For a positive scenario, the legal documents of projects are implemented on schedule, by 2020, CII is expected to reach 6,600 billion VND of total revenue and 1,608 billion VND of net profit (before the allocation of goodwill). Thus, after half a year, CII has fulfilled 17% of its revenue target and 24% of profit for the whole year.
Under a conservative scenario, CII targets a revenue of 5,800 billion dong and net profit of 808 billion dong. With this scenario, after half a year, CII also only fulfilled 20% of the revenue plan and 48% of the profit for the year.
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