VinFast inks deals with Credit Suisse, Citigroup to fund US plant

Vietnamese automaker VinFast has signed agreements with Credit Suisse and Citigroup on underwriting advisory for global capital raising transactions to fund its plant in the U.S.

Each contract has a minimum value of about $2 billion, focusing on building VinFast's factory in North Carolina and other business investments in the U.S. market, the company announced Wednesday.

Singapore headquartered VinFast Trading and Investment Pte. Ltd., a VinFast subsidiary, signed the documents appointing Credit Suisse (Singapore) as the arranger for issuance and sale of stocks of VinFast or its subsidiaries globally with a minimum size of $2 billion. It also named Citigroup Global Markets Inc. as the consultant for its efforts to raise another $2 billion or more for building the North Carolina factory.

The facility will cover about 800 hectares at the Triangle Innovation Point Industrial Park, Chatham County, with three areas: one for manufacturing and assembling electric cars and electric buses; another for battery production for EVs; and a support industry area for suppliers.

After the first phase of the plant is completed, it will have a designed capacity of 150,000 vehicles a year with the first models being the 3-row VF9 SUV and 3-row VF8 SUV.

VinFast, a Singapore-incorporated subsidiary of Vietnam's Vingroup, filed in early April for an initial public offering in the U.S. shortly after the electric vehicle maker secured an MoU with North Carolina’s government to establish a $4 billion factory complex in the state.

In mid May, Pham Nhat Vuong, chairman of Vingroup, said an IPO for VinFast might be delayed until next year due to market uncertainty. "We are seeking for an IPO in the fourth quarter, but given numerous market uncertainties, we may delay it to next year, if necessary," he said.