Deutsche Bank and SeaTown to Provide $510 Million Private Credit Loan to VinFast

According to Bloomberg, informed sources have revealed that Deutsche Bank and financial institutions such as SeaTown Holdings International are collaborating to provide up to $510 million in private credit loans to VinFast, the electric vehicle manufacturer under Vietnam's Vingroup JSC. The financing arrangement for VinFast is said to offer high single-digit returns. Additionally, a LinkedIn announcement indicates that Jefferies is acting as the exclusive financial advisor for VinFast and Vingroup in this transaction. A representative from Vingroup confirmed the financing move, stating that it would support VinFast's business operations. The representative noted, 'Given the current market environment, this loan was obtained under favorable commercial terms,' but did not disclose further details about the transaction. Meanwhile, spokespersons for Deutsche Bank and SeaTown declined to comment. VinFast is pushing forward its regional expansion plans through loan financing to compete with other global electric vehicle manufacturers. The electric vehicle industry is currently embroiled in intense competition due to significant price reductions, with a price war continuing to erode corporate profits. In May, Bloomberg reported that VinFast was in talks with local financial institutions in India for a $200 million loan to expand its business in India's third-largest automotive market. Additionally, in April, the company secured a syndicated loan of 18.4 trillion Indonesian Rupiah (approximately $114 million) from Bank Negara Indonesia and Maybank Indonesia to finance the construction of its factory in West Java, Indonesia. Bloomberg previously reported that Pham Nhat Vuong, founder and chairman of Vingroup, who also serves as VinFast's CEO, stated last year that he would continue to support VinFast as long as his personal funds were not exhausted. Notably, since 2023, Vuong has invested nearly $1 billion of his personal wealth into VinFast and has pledged to add another $2 billion by 2026 to support the company's global expansion. Vingroup has also committed to providing up to $1.4 billion in loan support to VinFast.