Management board of HCM City Infrastructure Investment JSC (CII) has approved the plans of issuing total VND1.2 trillion (US$52.6 million) worth of corporate bonds.

CII will issue two million corporate bonds with a par value of VND100,000 each, worth total VND200 billion (US$8.8 million), in the next three months. The bonds have a year of two terms and are non-convertible and unguaranteed.

The issue aims to increase the company’s working capital, according to its filing to the State Securities Commission.

In addition to this, the company’s management board approved CII to expedite the issuance of approximately VND1 trillion worth of bonds guaranteed by an international financial institution.

Recently, CII also passed a number of reports prior to the annual shareholders’ meeting this year. Under the plan, the company targets a revenue of VND6.3 trillion and after-tax profit of VND1.21 trillion in 2018.

It also proposed shareholders to temporarily not pay dividends for 2017 and retain all profits for the new investment. The expected dividend rate in 2018 is 31 per cent per annum. From 2019 onwards, dividends are expected to be paid as in previous years, ranging from 12-20 per cent per year.

As of December 31, 2017, CII had more than VND2.22 billion in short-term debt and nearly VND7.17 trillion in long-term debt, including over VND1.34 trillion bonds. — VNS