HANOI (Reuters) – VinFast, which aims to become Vietnam’s first domestic car manufacturer, said it has secured a 12-year credit facility for as much as $950 million to help buy machinery and equipment from German suppliers.
The company, a unit of Vietnam’s largest conglomerate Vingroup JSC <VIC.HM>, plans to have its first production models built under its own badge hit the streets next August. Vingroup has earmarked about $3.5 billion for the project.
Credit Suisse AG <CSGN.S> and HSBC <HSBA.L> were the lead arrangers and the financing agreement was guaranteed by German export credit agency Euler Hermes, Vingroup and Vinfast said in a statement.
The statement also said that in August Vinfast completed syndication of a $400 million term loan facility led by four international banks.
(Reporting by Khanh Vu; Editing by Edwina Gibbs)