Vingroup to issue $525 mln worth of int’l bonds

Vingroup, Vietnam’s largest listed conglomerate, planned to issue international bonds worth $525 million in the first round in May 2022.

Each bond will have a face value of $1 million and a five-year maturity, with the option to receive shares of VinFast, the group's electric vehicle maker.

Vingroup last year endorsed a decision to issue international bonds worth $1.5 billion. Much of the proceeds would be used to fund VinFast’s automobile manufacturing.

The bond issuance was scheduled to take place in the first quarter of 2022. However, it has been revised to be completed in two phases in 2022.

In early April, VinFast stated that its Singapore-based parent company had submitted an application for an initial public offering (IPO) with U.S. securities regulators, after announcing a $4 billion investment in electric vehicle manufacturing in North Carolina.

VinFast, which started operations in 2019, is penetrating the U.S. market, intending to compete with automakers and startups by launching two electric SUVs and a battery-rental model to reduce unit prices.

Pham Nhat Vuong, Chairman of Vingroup, said VinFast’s IPO will help the electric car maker become a global brand, but "if conditions aren’t perfect, VinFast could wait."