EV maker VinFast issues this year's second bond batch worth $157.5 mln in Vietnam

Hai Phong city-based electric vehicle (EV) manufacturer VinFast has raised another VND4 trillion ($157.45 million) worth of bonds in Vietnam as the company needs capital for its ambitious expansion plan.

The five-year notes were issued on October 18 and carry a coupon rate of 13.5% per annum, according to the Hanoi Stock Exchange.

This was VinFast’s second bond issuance this year. On October 10, the company sold 20,000 two-year bonds worth VND100 million ($3,936) each for a sum of VND2 trillion ($78.72 million), also at a coupon rate of 13.5% per annum.

In addition to the last two bond batches, VinFast has 15 other outstanding batches worth a combined VND19.12 trillion ($752.6 million), of which VND11.5 trillion will mature by the end of this year.

Earlier this month, Vingroup (HoSE: VIC), VinFast’s parent firm, decided to use its assets as collateral for VinFast’s bond issuances this year, with a value of up to VND6.5 trillion ($255.86 million).

At the company’s Q2/2024 earnings call on September 20, VinFast’s leadership said the company will stick to its plan to deliver 80,000 EVs this year.

As of June 30, 2024, VinFast’s current liabilities totaled $6.73 billion and non-current liabilities $2.8 billion, according to VinFast’s filing to the U.S. Securities and Exchange Commission in September. Cash and cash equivalents were $98.2 million.

Vingroup chairman Pham Nhat Vuong pumped VND22.26 trillion ($876.2 million) for VinFast in 2023 and H1/2024. In April, he said he would provide at least another $1 billion.

VinFast announced the delivery of over 9,300 EVs in September, becoming the largest auto seller in Vietnam.