To raise capital for projects, CII expects to issue non-guaranteed convertible bonds (CB) to Rhinos Asset Management (from South Korea) with the maximum total face value of $60 million (equivalent to 1.350 billion VND).

On November 24, 2016, CII and the first investor KEB HANA BANKTRUSTEE AND CUSTODIAN BUSINESS (The representative bank of Rhinos Asset Management (“RAM”) Fund) signed Bond Purchase Contract for $40 million.

In South Korea, RAM is the vanguard fund investing in international convertible bonds market, with special focus on markets such as America Japan, Hong Kong, EU… With the criteria that invested company must have a firm foundation and long-term growth potential, up until now, RAM has invested in more than 60 companies with the total portfolio value of $1,2 billion. RAM’s investment in CII marks its first penetration into Vietnamese convertible bond market.

The successful bond issuance to South Korean investment fund (as well as the international CB issuance to Goldman Sachs a few years back) and continuous new investments by foreign investors not only proves CII’s fundraising capabilities but also displays trust from international capital markets in the company’s growth potential. This proves that CII’s active IR activities are showing positive impacts. CII is continuing to strengthen IR activities to build the company’s image and CII brand in the future.

Main content of this Bond offering:

• The issuer: HO CHI MINH CITY INFRASTRUCTURE INVESTMENT JSC.
• Type of bond offering: Non-guaranteed convertible bond
• Bond value: 40.000.000 USD (forty million USD)
• The first investor: KEB HANA BANKTRUSTEE AND CUSTODIAN BUSINESS (The representative bank of Rhinos Asset Management (“RAM”) Fund)
• Bond face value: 100.000 USD (One hundred thousand USD)
• Offering price: 100% face value
• Bond duration:5 years
• Convertible price: 38.500 dong/ share (equal to 130% closing price of CII share in session dated November 23, 2016)
• Exchange rate applicable for the conversion: the average rate of USD buying price and USD selling price announced by VietinBank (Vietnam Joint Stock Commercial for Industry and Trade) on November 23, 2016.
• Offering method: Private offering.
• CII’s right to re-purchase:Start from the third year. CII has the right to make a request to repurchase maximum 50% issued bonds. Then, Bondholder must (1) convert bonds into common stock at the convertible price of  38.500 dong/share; (2) or sell the bonds to CII at basis price and receive interest of 4,5%/year.
• Bondholder’s right to re-sell: From the third year to 9 months before the maturity date, Bondholder has the right to ask CII to re-purchase the issued bone: then, bondholder will receive interest of 3%/year. However, if it comes to the maturity date of the bonds, bondholder can only receive 1%/year.
• The Bondholder can extent bond duration 5 years more. The convertible price from the sixth year on will increase 10% compared to the previous year.

Shareholders and Investors can refer more information attached below.

Sincerely.