Vietnamese carmaker VinFast plans to raise at least $4 billion to build its planned electric vehicle (EV) factory in the US.
Parent company Vingroup said in a statement that it had appointed Credit Suisse to arrange the issue of offshore securities to raise $2 billion for VinFast or its subsidiaries globally.
Citigroup Global Markets was tapped as an adviser on transactions with the same value. The announcement marks the most significant development for the company, which is betting big on the US market.
Each agreement “could include debt or private placements of equity,” the statement said, without elaborating. Credit Suisse and Citi declined to comment.
IPO Might Be Delayed
News of the funding arrangement comes after Vingroup warned earlier this year that an initial public offering for VinFast might be delayed until next year due to market uncertainty..
The North Carolina factory, covering an area of 800 hectares, will initially produce 150,000 electric vehicles a year, the company said.
Last December, Vingroup closed its first international sustainable syndicated loan transaction of $400 million.
This was the first sustainable syndicated loan transaction, and the second international sustainable fund-raising transaction by Vingroup.
Proceeds from the loan will be used by VinFast and other Vingroup member companies to in green and sustainable projects, including EV manufacture.
- Reuters, with additional editing by George Russell