Vietnamese conglomerate Vingroup’s subsidiaries VinFast Auto Ltd and Vincom Retail JSC have received private credit loans from Deutsche Bank AG and SeaTown Holdings International, among others, for their expansion plans, Bloomberg reported on Monday.
While VinFast raised a $510-million debt facility, Vincom Retail has secured commitments for a $240-million private credit loan, the report stated.
SeaTown Holdings International, Deutsche Bank AG, and HSBC will provide around $160 million of Vincom’s offshore loan, while the rest will be provided by Vietnamese banks, it added.
“These are financial mobilisation activities by VinFast and Vincom to support their respective business operations. The loans have been secured on favourable commercial terms, given the current market conditions. However, as the transaction terms are subject to confidentiality agreements between the involved parties, we are unable to share further details at this time,” a Vingroup representative told DealStreetAsia.
VinFast is actively tapping the loan market to fuel its regional expansion plans, positioning itself to compete with global EV manufacturers. Bloomberg News reported in May that the electric automaker was in talks with local Indian lenders for a $200-million loan as it looks to expand in the world’s third-biggest car market.
It also secured a 1.84 trillion rupiah ($114 million) syndicated facility in April from Bank Negara Indonesia and Maybank Indonesia to fund its factory development in Indonesia’s West Java province.
Double-digit growth in vehicle sales and total revenues was not enough to narrow Nasdaq-listed VinFast’s net losses in 2024. The carmaker saw its net loss widen by 28.4% in 2024 to $3.18 billion, even as the cost of sales surged 66.6%, driven largely by increased product deliveries.
In May, Bloomberg also reported that Vietnamese behemoth Vingroup is reportedly raising a $300-million loan to buy back KKR’s interest in its education subsidiary Vinschool. KKR currently holds a 38% stake in Vinschool.
