Reuters: Vingroup is in talks to raise $1 billion for VinFast

Tram Ho

Vingroup is in talks with investors, including Qatari investment funds and BlackRock, to raise about $1 billion in equity for VinFast, its car development unit, according to three sources. by Reuters.

The fundraising comes as VinFast, Vingroup’s auto business, is betting big on the US market, where it hopes that electric SUVs and a battery rental model will be enough to attract people. Consumers shun names like Tesla and General Motor.

If successful, it could potentially become Vietnam’s largest private equity call, underscoring the interest of investors in Southeast Asia, a region where ride-hailing and delivery giants like Grab and GoTo has raised billions of dollars.

The fundraising move also shows that electric vehicle projects remain a major attraction for investors.

One of the sources said: “Electric vehicles are the theme of the year and receive great attention from investors.”

Reuters: Vingroup đang đàm phán để huy động 1 tỷ USD cho VinFast - Ảnh 1.

Sources say Vingroup is discussing fundraising before VinFast lists in the US, a move that could take place as early as next year.

They also said the company could finalize a private fundraising deal as early as next month. Vingroup is also negotiating with global private equity firms.

Sources said Vingroup is in advanced talks with the Qatar Investment Authority (QIA), a $300 billion sovereign wealth fund, as well as diversifying investments from core European markets. , Americas to Asia.

BlackRock is the largest asset management company in the world.

Vingroup declined to comment, while QIA also did not respond. BlackRock did not immediately respond to a request for comment.

Earlier this month, VinFast’s chief executive told Reuters that the company plans to list in the US within the next few years, aiming to join a growing list of electric vehicle startups that already know how to take advantage of the market. investors’ enthusiasm to raise capital.

Two other sources revealed that VinFast is sticking to its previous plan of listing through a special purpose acquisition company (SPAC) or an independent listing.

VinFast, founded in 2017 as a division of Vingroup, plans to start producing electric cars in the US in the second half of 2024. The company has introduced two sport utility vehicle models, the VF e35. and the VF e36 at the Los Angeles Auto Show this month.

Refer to Reuters

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Source : Genk