Vietnamese electric vehicle manufacturer VinFast has signed agreements with banks to raise $4 billion to fund its planned North Carolina EV factory and US rollout, according to a statement released by Vingroup JSC. VinFast is a member of Vingroup — the largest private corporation in Vietnam with businesses across technology and hospitality.
Global investment bank and financial services firm founded and based in Switzerland, Credit Suisse Group AG, will take care of the issuance of offshore securities to raise approximately $2 billion. American multinational investment bank and financial services corporation, Citigroup Global Markets Inc., will act as an adviser on transactions with a minimum value of around the same amount related to the development of VinFast’s US factory, the statement said.
Furthermore, each agreement has a minimum financing value of approximately $2 billion, which could include debt or private equity placements.
Le Thi Thu Thuy, vice chairwoman of Vingroup and Global CEO of VinFast, said the commitment from international leading financial institutions to work with them not only demonstrates our solid reputation, “but also shows the banks’ trust in VinFast, the trust of partners with deliberate investment plans in the international market in general and the US in particular, and especially the development of the manufacturing facility in North Carolina, to ensure production autonomy globally and create jobs for the local community.”
Following the initial plans released by VinFast, the US factory will be located at Triangle Innovation Point industrial park in Chatham County, North Carolina, with a total land area of about 800 hectares. It includes three main zones: one for the manufacturing and assembling of electric cars and electric buses, another for EV battery production, and another for VinFast’s suppliers.
In March, US President Joe Biden lauded the Vietnamese car manufacturer’s multibillion-dollar investment to build an electric vehicle and battery manufacturing facility in North Carolina.
The construction of the North Carolina plant may start in September this year. The VinFast CEO told Bloomberg TV in June that they’re on track to start production of electric cars in the US by 2024.
Phase one of the plant is expected to have a capacity of 150,000 vehicles per year, producing VF 9 - a 7-seater full-size SUV and VF 8 - a 5-seater mid-size SUV.