Vingroup’s electric vehicle (EV) manufacturer VinFast is allegedly considering a financing round aimed at raising up to $1 billion in preparation for a prospective initial public offering (IPO) in the United States.
Bloomberg reported that VinFast and its financial advisors have contacted potential investors to see whether they are interested.
Furthermore, discussions are still underway but there is no guarantee that the fund-raising campaign would be successful. VinFast is looking at a variety of funding possibilities, including convertible debt, Bloomberg noted.
According to Vingroup vice chairwoman Le Thi Thu Thuy in an interview in November 2021, VinFast wanted to spend up to $6 billion to construct an EV manufacturing in the US and was in negotiations with possible investors to raise billions of dollars to fund the development.
Thuy also revealed that VinFast would file for an IPO in the US in a year or two and that the company is valued at $25-$60 billion, said Bloomberg.
Last December, Vingroup secured a $400-million loan from international lenders to fund the sustainable development of VinFast and other subsidiaries.
The lenders who participated in the funding were BNP Paribas, Cathay United Bank, Credit Suisse, HSBC, Maybank, and Taipei Fubon.