Vietnamese automaker VinFast said it has used Credit Suisse and Citigroup to raise at least $4 billion to build a planned electric-vehicle plant and ancillary battery facilities in North Carolina, as well as for its U.S.-based automaker, Reuters reported. Funding for expansion. The July 13 announcement marks the most significant international development for the company, which is entering the U.S. market in hopes of competing with other EV makers such as Tesla and the big traditional car companies for its cheapest electric sports models Utility vehicle (SUV) and battery rental models. Parent company Vingroup…
Vietnamese carmaker VinFast said it has used Credit Suisse and Citigroup to raise at least $4 billion to build its Planned electric car factory and an affiliated battery facility in North Carolina and to fund its expansion in the United States, Reuters report.
The July 13 announcement marks the most significant international development for the company, which is entering the U.S. market in hopes of competing with other EV makers such as Tesla and the big traditional car companies for much of its cheaper electric movement Model utility vehicle (SUV) and battery leasing model.
Parent company Vingroup said in a statement that it had appointed Credit Suisse to arrange the issuance of offshore securities to raise $2 billion for VinFast and its global subsidiaries, while Citigroup Global Markets was appointed to advise on a deal of equal value.
Vingroup noted that the two agreements “may include debt or private equity,” without providing further details.
Annual production capacity of 150,000 electric vehicles
Under VinFast’s current plans, its U.S. factory will be located in the Triangle Innovation Point Industrial Park in Chatham County, North Carolina, on a total land area of approximately 800 hectares, comprising three main areas: one for the manufacture and assembly of electric vehicles and electric vehicles. Buses, another for EV battery production, and another for VinFast’s supplier.
Company officials announced earlier this year that the assembly plant itself would cost about $2 billion, but additional operations, including the battery facility, would bring the total cost to $6.5 billion. It has not been announced where the remaining $2.5 billion will come from.
The first phase of the plant is expected to have an annual production capacity of 150,000 vehicles, producing 7-seat full-size SUV VinFast VF9 and 5-seat mid-size SUV VF8. Up to 13,000 jobs will be created.
CEO ‘excited’
“The commitment of leading international financial institutions to partner with VinFast is not only a testament to our strong reputation, but also the bank’s trust in VinFast’s passion,” said Le Thi Thu Thuy, Vice Chairman of Vingroup and VinFast Global CEO.
VinFast will wind down its young, loss-making combustion engine car business this year and switch entirely to electric vehicles, namely sport utility vehicles, buses and electric motorcycles.
The automaker registered for its initial public offering in the U.S. in April, and if successful, it would be the first major U.S. listing of a Vietnamese company.However, the listing, originally planned for this year, is likely to be put off VinFast said in May that due to fluctuating market conditions, it will not be until next year.
