VinFast enters $1 billion standby equity subscription agreement with Yorkville Advisors

Sunday, Oct 22, 2023 17:00

VinFast Manufacturing Facility in Hải Phòng City, Việt Nam. — Photo courtesy of VinFast

VinFast, the Vietnamese electric vehicle (EV) maker, has entered a standby equity subscription agreement with Yorkville Advisors, a global investment fund manager.

VinFast said on Friday that it had an option, but not an obligation, to require Yorkville to subscribe for up to US$1 billion of ordinary shares in VinFast at any time during the 36-month term of the agreement, subject to certain conditions and limitations.

David Mansfield, CFO of VinFast, said: “This new source of equity funding provides us with valuable optionality and access to capital to continue to expand our business on a global scale. While we are under no obligation to draw on the full amount, the transaction aligns with our goals of opportunistic capital raising while adding liquidity to our shares over time.

"In addition to existing funding commitments, it provides financial flexibility to fund our growth. We will continue to evaluate other capital markets transactions and sources of fundraising as VinFast continues to grow.”

Mark Angelo, Founder and President of Yorkville, commented: “VinFast is a true leader in EVs. We are excited for this opportunity to be a part of VinFast’s growth and development, and we look forward to seeing VinFast’s continued success in the EV market. We couldn’t be prouder of our partnership with VinFast in its mission for a greener future.”

In April 2023, Chairman Phạm Nhật Vượng of Vingroup and VinFast entered into a capital funding agreement, under which VinFast would receive grants of up to VNĐ24 trillion ($1 billion) from Vượng, as well as up to VNĐ12 trillion ($500 million) in non-refundable grants and up to VNĐ24 trillion in loans from Vingroup, in order to support VinFast’s growth and global expansion plans.— VNS

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