Logo of Phnom Penh Post newspaper Phnom Penh Post - Vingroup to mobilise $302M to pump capital into VinFast, VinSmart

Vingroup to mobilise $302M to pump capital into VinFast, VinSmart

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VinFast estimated it sold a total of 29,485 vehicles last year. VINFAST

Vingroup to mobilise $302M to pump capital into VinFast, VinSmart

Vietnam's largest private conglomerate Vingroup plans to issue three tranches of bonds with a total volume of 6.97 million bonds to raise capital for its subsidiaries VinFast and VinSmart.

The bonds have a correspondent value of 6.97 trillion dong ($302 million). The first issuance is expected to take place on February 18.

Vingroup’s bonds are not convertible, having a par value of 100,000 dong, three-year term, not accompanied by warrants and are unsecured.

Individual investors who want to buy Vingroup bonds must register for a minimum value of 100 billion dong. The figure for institutional investors is 500 billion dong.

The entire mobilised capital from the issuance will be used to supplement capital for VinFast and VinSmart. VinFast will increase its capital by 5.1 trillion dong and VinSmart by 1.86 trillion.

Automaker VinFast expects to break even in the next five years as it ramps up production and cuts costs.

The subsidiary also plans to start operating VinBus, a public transport network, this year and launch five new models, including three electric cars, by next year, according to a recent report by stock brokerage KB Securities Vietnam.

It eyes a 30 per cent share of the Vietnamese auto market. VinFast sold 29,485 cars last year, 61 per cent of them being the small hatchback, Fadil.

VinFast estimated it sold a total of 29,485 vehicles last year, including 18,016 Fadil cars, 6,013 Lux A2.0 cars and 5,456 Lux SA2.0 models. From 2022, VinFast plans to introduce two more petrol-powered cars and three electric models, expected to account for 30 per cent of the car market share in Vietnam.

Vingroup chairman Pham Nhat Vuong last year said VinFast and Vinsmart want to export their products within the next few years, with the US the first major target market.

VIET NAM NEWS/ASIA NEWS NETWORK

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