CII to issue bonds to Goldman Sachs

The HCM City Infrastructure Investment Joint Stock Company (CII) will issue convertible bonds worth US$15 million to Goldman Sachs Investment Partners, raising the total value of bonds issued for this investor to US$40 million.
Le Vu Hoang, general director of CII, said the company would seek approval from an extraordinary general meeting set for January 13, 2011 to issue US$15 million worth of convertible bonds, on top of an earlier transaction of US$25 million.

In October the State Securities Commission of Vietnam allowed CII to issue US$25 million worth of bonds to Goldman Sachs Investment Partners, a subsidiary of Goldman Sachs. Due to some incomplete procedures, Goldman Sachs has not made the payment to CII, but this would be done soon in the first quarter, Hoang said.
The new issue is aimed at mobilizing capital for developing the Rach Chiec Bridge project and expanding Hanoi Highway connecting HCMC and neighboring provinces. The bond will come with a term of five years, and carry a coupon of not higher than 4% per year.
According to CII, commercial operations of infrastructure projects will generate profits to pay the interest for the bond holders.

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