HANOI (Reuters) – Vietnam carmaker VinFast has signed framework agreements with Credit Suisse (Singapore) Ltd and Citigroup Global Markets Inc. to boost at the least $4 billion to develop an electrical car factory in North Carolina, the corporate mentioned.
The announcement comes after its father or mother Vingroup JSC in May mentioned that an preliminary public providing (IPO) for VinFast may be delayed till subsequent 12 months on account of market uncertainty..
The firm has not specified what sort of debt it will elevate. Credit Suisse and Citi didn’t instantly reply to requests for remark.
VinFast, which launched operations in 2019, is betting large on the U.S. market, the place it hopes to compete with legacy automakers and startups with two all-electric SUVs and a battery leasing mannequin that may scale back the acquisition worth.
The North Carolina factory, overlaying an space of 800 hectares, will initially produce 150,000 electrical autos a 12 months, the corporate mentioned.
VinFast has promised to create 7,500 jobs on the factory and mentioned it aimed to start out manufacturing by 2024.
The firm mentioned it is because of open its first abroad showrooms in California within the coming days, together with a flagship retailer in Santa Monica.
For the North Carolina factory, it has additionally been searching for assist from U.S. President Joe Biden’s administration for potential financing by way of a fund for advanced-technology autos.
In addition, VinFast has filed for an IPO within the United States by way of a shell firm in Singapore that now legally holds nearly all the startup automaker’s property.
Vingroup is Vietnam’s largest listed firm by market capitalisation, with companies in retail, actual property and resorts. It created VinFast in 2019 to construct typical combustion-engine automobiles earlier than switching solely to EVs in 2021.
Despite its chilly begin in an more and more crowded marketplace for EVs, VinFast has received assist from suppliers, some analysts and the Biden administration partially due to the notion that it’s a rising nationwide champion in Vietnam.
In late March, Biden tweeted that VinFast’s then just-announced U.S. funding plans have been “the most recent instance of my financial technique at work.”
(Reporting by Phuong Nguyen and Anshuman Daga in Singapore; Writing by Khanh Vu; Editing by Ed Davies)