According to a board resolution issued on December 5, Coteccons will issue 14 million bonds at a face value of VND100,000 ($3.79) each.

The three-year notes will carry a fixed annual interest rate of 9%, with coupon payments every six months. The sale is expected to take place in Q4/2025 or Q1/2026, subject to approval from the State Securities Commission of Vietnam.

Both Coteccons and bondholders will have options to buy back or sell back the bonds at the end of the first and second year.

The company plans to use VND250 billion ($9.48 million) from the issuance, or nearly 18% of total proceeds, to fund wages and bonuses for employees next year. The remaining VND1.15 trillion ($43.62 million) will be used to settle payments to subcontractors and key suppliers.

If payout schedules lag, Coteccons said it may use bank loans or idle cash as bridge financing before reimbursing with bond proceeds.

The contractor expects pre-tax profit to rise from VND552 billion ($20.94 million) in FY2025 to VND882.6 billion ($33.48 million) in FY2026.

Operating cash flow is projected to stay negative over the two years due to high working capital needs, though Coteccons forecasts a strong liquidity position, with cash and equivalents rising from VND2.71 trillion ($102.87 million) at end-2025 to VND3.8 trillion ($144.14 million) by end-2026.

The board also approved a construction contract for the Gia Binh International Airport project in the northern province of Bac Ninh, where subsidiary Unicons will participate as part of the main contractor consortium.