Vingroup, Vietnam’s biggest listed company, plans to raise $1.5 billion through the issue of international bonds next year to boost capital for its car manufacturing unit, the company said in a statement.
The funds will be used to repay loans and for the expansion of VinFast, the group’s vehicle subsidiary, the statement said. Bond holders will be able to exercise options to receive share in VinFast Singapore.
Vingroup earlier this month set up a Singapore-based holding company owning a stake in VinFast’s operations in Vietnam in preparation for its listing on the US stock market scheduled for the second half of next year.
The bonds would have a maturity of five years. Par value has not been revealed yet, the statement said.
VinFast became the country’s first fully fledged domestic car manufacturer when its petrol-powered models built under its own badge entered the market in 2019.
It is betting on the US market, where its electric SUVs and a battery leasing model are expected to debut next year.
Vingroup said it was targeting global electric vehicle sales of 42,000 units next year, up from its previous plan of 15,000.
- Reuters with additional editing by Kevin Hamlin
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