According to the information released by the Hanoi Stock Exchange (HNX), the Hanoi Highway Investment and Construction Joint Stock Company (HNHCH) has successfully issued a bond series with the code HNHCH2433001, with a volume of 5,500 bonds and a face value of 100 million dong/bond. The total value of the issuance is 550 billion dong.
The bond series has a term of 117 months (over 9 years) and was issued on February 7, 2024, with a maturity date of November 7, 2033. The issuance interest rate is 10.1% per annum.
It is known that the Hanoi Highway Investment and Construction Joint Stock Company is currently a subsidiary of Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII).
As of December 31, 2023, CII owns 100% of the voting rights in Hanoi Highway, with a total ownership interest of 76.97%, including 49% direct ownership and 27.97% indirect ownership through its subsidiary CII Bridges and Roads Investment Joint Stock Company (CII B&R, stock code: LGC, listed on HoSE).
Hanoi Highway toll booth contributes significantly to CII’s assets.
The Hanoi Highway Investment and Construction Joint Stock Company is the investor of the Hanoi Highway BOT expansion project. This project accounts for 25% of the asset contribution to CII, second only to the Trung Luong – My Thuan expressway.
According to CII’s estimate, the Hanoi Highway BOT expansion project will break even in 2035. The project may account for 30% of the annual revenue during the 2023-2032 period, with the estimated revenue for this period increasing from nearly 2,400 billion dong to 5,000 billion dong.
The investor of the Hanoi Highway BOT expansion project is also the second subsidiary of CII to issue bonds recently. Previously, on January 29, 2024, Binh Thuan BOT Joint Stock Company (BOT Binh Thuan) successfully issued a bond series with the code BNTCH2433001, with a volume of 12,000 bonds and a face value of 100 million dong/bond.
The total value of the issuance is 1,200 billion dong, with a term of 117 months. The maturity date is October 29, 2033. CII itself is the investor who bought the 1,200 billion dong bond series of Ninh Thuan BOT Company.
BOT Binh Thuan is also a subsidiary indirectly owned by CII through CII B&R. This is the company responsible for implementing and managing the Phan Rang – Thap Cham Phase 2 project – expanding National Highway 1A through Ninh Thuan province.
Regarding the parent company CII, it has just completed the issue of more than 28 million CII42301 convertible bonds on January 25, 2024. According to CII’s report, the company issued 28,130,689 CII42301 bonds out of a total of 28,401,951 bonds offered, equivalent to a successful offer rate of 99.05% of the total bonds offered.
After deducting expenses, CII earned a net amount of 2,812 billion dong. The expected bond transfer time is from February to March.
These are bonds issued to existing shareholders through conversion, at a ratio of 10:1, meaning that shareholders owning 10 shares have the right to purchase an additional bond with a face value of 100,000 dong/bond. The bonds have a term of 10 years and can be converted into common shares, without collateral or accompanying warrants.
With the amount raised, CII plans to use 1,200 billion dong to purchase privately issued bonds from Ninh Thuan BOT Company and allocate 1,640.2 billion dong to purchase privately issued bonds from Hanoi Highway Investment and Construction Joint Stock Company.
After the successful conversion bond issuance, CII also spent 115 billion dong to repurchase a portion of the CII012029-G bond series on January 31. This is a bond series issued on January 31, 2019, with a term of 10 years and a total issuance value of 1,150 billion dong. After being repurchased, the remaining circulating value of the bond series is 1,035 billion dong.
