VinFast – subsidiary company of Vietnam’s Vingroup has entered into a US$950 million financing agreement guaranteed by Euler Hermes and the German Export Credit Agency (ECA), to support the country’s first automotive and motorcycle manufacturing complex.
The complex, Vinfast’s primary manufacturing base, is located in Hai Phong city, at an industrial park.
Credit Suisse and HSBC are the Joint Mandated Lead Arrangers of this guaranteed term loan. The agreement is also supported by Credit Suisse AG (Credit Suisse) and The Hongkong and Shanghai Banking Corporation (HSBC).
This landmark transaction is the first ECA-supported facility extended to a private sector company in Vietnam, further enhancing Vingroup’s track record of pioneering international capital markets transactions.
The financing package is an up to 12-year $950 million Hermes-covered Buyers’ Credit facility for the payment of machinery and equipment from nine German suppliers. The loan allows for an extended tenor and large financing amount at a highly competitive pricing.
Anh Le, Managing Director of Investment Banking and Capital Markets, Credit Suisse said: “Credit Suisse is pleased to jointly lead and arrange this significant transaction for VinFast. The capital raised through this financing supports VinFast on its inspiring journey to position itself as a global automotive manufacturer.”
The CEO of HSBC Vietnam, Mr. Pham, Hong Hai said: “We are proud to be part of this landmark deal with VinFast to support their journey to introduce the first made in Vietnam cars.”
In August 2018, VinFast also completed syndication of a debut $400 million term loan facility led by four international banks. The syndication was well participated by over ten Asian and European banks, further strengthening VinFast’s position in the international capital markets.
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