Vingroup to raise $421M via bonds

By Dat Nguyen August 2, 2023 | 01:55 am PT

A VinFast electric SUV VF8 model is displayed at a store which the Vietnamese automaker plans to open in Santa Monica, California, U.S., May 23, 2022. Picture taken May 23, 2022. Photo by Reuters/David Swanson

Vingroup will issue VND10 trillion ($421.27 million) worth of bonds to the public this year to fund its VinFast operations.

VND6 trillion worth of bonds will have a maturity of three years and the rest two years.

Individual investors are required to buy at least VND50 million worth of bonds, and organizations need to buy VND500 million minimum.

The 36-month bonds will have a coupon rate of 15% a year and the 24-month bond 14.5%. The interests will be adjusted later depending on the market.

Vingroup will loan the cash to its unit VinFast to make cars in its factory in the northern city of Hai Phong.

VinFast is set to list its shares in the U.S. this month.

Vingroup saw revenue double year-on-year to VND102.53 trillion in the first six months.

Its pre-tax profit also doubled to VND7.94 trillion, the highest since it was listed on Vietnam’s stock market.