08:21 (GMT +7) - Tuesday 23/10/2018

Business

VinFast secures 12-year credit facility

Released at: 19:21, 10/10/2018

VinFast secures 12-year credit facility

Photo: Vingroup

$950 million credit facility from German export credit agency.

by Ngoc Lan

VinFast announced on October 9 it has secured a 12-year credit facility of $950 million from Euler Hermes, a German export credit agency.

The 12-year financial package has a low interest rate to help VinFast import machinery and equipment from German suppliers of equipment and services.

This is the first transaction Euler Hermes has sponsored for a private company in Vietnam. Credit Suisse AG and HSBC were co-arrangers.

With a large number of partners (nine suppliers), large capital (nearly $1 billion), a long term (12 years), and implementation arrangements being in a very short period of time, the transaction is a landmark and affirms the prestige and pioneering role of VinFast in particular and Vingroup in general in international capital markets.

Mr. Le Hoai Anh, Managing Director of Credit Suisse, said that Credit Suisse is pleased to have co-arranged and funded the important transaction. “Capital mobilized through the deal will support VinFast on its inspirational journey to become a global automotive manufacturer,” he said.

Mr. Pham Hong Hai, General Director of HSBC Vietnam, also affirmed that they are proud to be part of the landmark agreement to support the production of the first Vietnamese-branded motor cars.

In July, VinFast completed the distribution of the first $400 million commercial loan arranged and sponsored by four foreign banks. The transaction involved the participation of more than ten Asian and European banks.

A sedan and SUV from VinFast were officially launched at the 120th Paris Motor Show on October 2.

With sophisticated investment and cutting-edge design and technology, the launch marked Vietnam’s entry into the global automobile market.

Its appearance at the Paris Motor Show 2018 came as a surprise to many professionals in the industry and international media, with it launching its first models just over a year since beginning. Both are highly regarded for their appeal and also meet the highest international standards.

VinFast was recently presented with the “A Star is Born” trophy from AUTOBEST, a leading European automotive awards body. Presented by a jury of independent motoring writers from across Europe, the award recognizes the fierce, aspirational approach of VinFast and celebrates the “most exciting new brand and vehicles” at the 2018 Paris Motor Show.

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