Automaker VinFast enters $1 bln standby equity subscription agreement with Yorkville Advisors

VinFast, the electric vehicle (EV) maker under Vietnamese private conglomerate Vingroup, has entered a standby equity subscription agreement with Yorkville Advisors, a global investment fund manager.

In a Friday announcement, VinFast said it has an option, but not an obligation, to require Yorkville to subscribe for up to $1 billion of ordinary shares in VinFast at any time during the 36-month term of the agreement, subject to certain conditions and limitations.

Each issuance by VinFast to Yorkville under the Subscription Agreement is subject to a maximum amount equal to 100% of the average of the daily trading volume of VinFast’s ordinary shares on the Nasdaq Stock Market for the five trading days immediately preceding the delivery of an advance notice from VinFast to Yorkville.

Each ordinary share to be issued to Yorkville from time to time under the agreement will be issued at 97.5% of the market price for the three trading days commencing on the applicable advance notice date.

“This new source of equity funding provides us with valuable optionality and access to capital to continue expanding our business on a global scale," said David Mansfield, CFO of VinFast.

"While we are under no obligation to draw on the full amount, the transaction aligns with our goals of opportunistic capital raising while adding liquidity to our shares over time. In addition to existing funding commitments, it provides financial flexibility to fund our growth. We will continue to evaluate other capital markets transactions and sources of fundraising as VinFast continues to grow,” the executive added.

“VinFast is a true leader in EVs. We are excited for this opportunity to be a part of VinFast’s growth and development, and we look forward to seeing VinFast’s continued success in the EV market," said Mark Angelo, founder and president of Yorkville.