Vietnamese carmaking startup VinFast gets $950 million credit line
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VinFast, which aims to become Vietnam’s first domestic car manufacturer, said it has secured a 12-year credit facility for as much as $950 million to help buy machinery and equipment from German suppliers.
The company, a unit of Vietnam’s largest conglomerate Vingroup JSC, plans to have its first production models built under its own badge hit the streets next August. Vingroup has earmarked about $3.5 billion for the project.
VinFast, led by former General Motors executive Jim DeLuca, showed off its BMW-based LUX A2.0 sedan and LUX SA2.0 crossover at the Paris auto show last week. Assembly is scheduled to begin next week year.
Credit Suisse AG and HSBC were the lead arrangers and the financing agreement was guaranteed by German export credit agency Euler Hermes, Vingroup and Vinfast said in a statement.
The statement also said that in August Vinfast completed syndication of a $400 million term loan facility led by four international banks.
Questions & Answers
Q.What is the primary purpose of the recently secured $950 million credit facility?
What is the primary purpose of the recently secured $950 million credit facility?
The credit facility is intended to help VinFast purchase machinery and equipment directly from German suppliers. This funding supports the company's ambition to become Vietnam's first domestic car manufacturer.
Q.When does VinFast expect its first production models to be available for sale?
When does VinFast expect its first production models to be available for sale?
VinFast plans for its first production models, built under its own badge, to hit the streets next August. Assembly for these vehicles is scheduled to commence next week year.
Q.Which financial institutions were involved in arranging the $950 million credit facility?
Which financial institutions were involved in arranging the $950 million credit facility?
Credit Suisse AG and HSBC were the lead arrangers for the financing agreement. The credit facility was further guaranteed by the German export credit agency Euler Hermes.
Q.What is the total investment Vingroup has committed to the VinFast project?
What is the total investment Vingroup has committed to the VinFast project?
Vingroup, the parent conglomerate, has earmarked approximately $3.5 billion for the VinFast project. This substantial investment underpins the carmaker's development plans and operations.
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