According to Bloomberg, people familiar with the matter revealed that Deutsche Bank and SeaTown Holdings International and other financial institutions are joining forces to become a subsidiary of Vietnamese conglomerate Vingroup JSCElectric vehicleVinFast, the manufacturer, offered a private credit loan of up to $510 million.
Image source: VinFast
People familiar with the matter pointed out that the financing solution provided to VinFast can provide high single-digit returns. At the same time, according to the LinkedIn announcement, Jefferies served as the exclusive financial advisor to VinFast and Vingroup in the transaction.
A representative of Vingroup confirmed the financing action and said it will help support VinFast’s business operations. “Given the current market environment, the loan was obtained on favorable commercial terms,” the representative said. However, he did not disclose more details about the deal. Meanwhile, spokesmen for Deutsche Bank and SeaTown declined to comment.
VinFast is pursuing regional expansion plans by seeking loan financing in a view to competing with other electric vehicle manufacturers around the world. At present, the electric vehicle industry is in a state of fierce competition due to sharp price cuts, and the price war is continuing to erode corporate profits.
In May, Bloomberg reported that VinFast was negotiating a $200 million loan with local Indian financial institutions to expand its operations in India, the world’s third-largest auto market. In addition, the company received a syndicated loan of IDR 1.84 trillion (US$114 million) from Bank Negara Indonesia and Maybank Indonesia in April to finance the construction of its factory in Indonesia’s West Java province.
Bloomberg previously reported that Pham Nhat Vuong, founder and chairman of Vingroup and CEO of VinFast, said last year that he would continue to support VinFast as long as his personal funds have not been exhausted.
It is worth mentioning that since 2023, Pan Riwang has invested nearly $1 billion in personal property in VinFast and has promised to support the company’s global expansion by 2026. Vingroup has also committed to providing up to US$1.4 billion in loan support to VinFast.
