Vingroup raises funds from bond issuance for VinFast factory in Hai Phong

The group is expected to raise VND6 trillion from 36-month term bonds and VND4 trillion from 24-month term bonds, offering a price of VND100,000 each bond.

Holders of 36-month term bonds will enjoy an annual interest rate of 15% for the first two years, and then a floating interest rate equal to the reference interest rate plus 4.5% in the following years.

Meanwhile, holders of 24-month term bonds will enjoy an annual interest rate of 14.4% for the first two years, and then a floating interest rate equal to the reference interest rate plus 4% in the following years.

The money to be raised from bond issuance will be used to invest in VinFast’s car manufacturing plant in Dinh Vu Economic Zone in the northern port city of Hai Phong.

Established in 2017, VinFast, an affiliate of Vingroup, owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90% automation in Hai Phong.

VinFast is committed to its mission of creating a sustainable future for everyone. The company converted into a fully EV manufacturer in 2022, and has delivered four EV models: VF e34, VF 8, VF 9 and VF 5 to customers in Vietnam to date.

VinFast recently crossed an important milestone on the journey to becoming a recognised global EV brand with the first VF 8 EVs exported to North America earlier this year. It hosted a groundbreaking ceremony on July 28 for its electric vehicle plant in North Carolina, USA.

The company has also opened its flagship stores in Europe in an effort to make inroads into this lucrative market.