Vingroup and VinFast close US$400M sustainable syndicated loan

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Vingroup has closed on an international sustainable syndicated loan of US$400 million to develop VinFast, the Vietnamese conglomerate’s smart electric car brand, the group said in a press release earlier this week.

The proceeds will be used by VinFast and other Vingroup member companies in green and sustainable projects meeting the Sustainable Financing Framework announced by Vingroup in September, the statement said.

In September, Vinpearl, a developer and operator of tourism services in Vietnam, issued a US$425 million sustainable exchangeable bond, the statement said.

Nguyen Viet Quang, vice chairman and CEO of Vingroup, said in the statement: “The success of this sustainable syndicated loan is made possible because we have received overwhelming support from international lenders for our commitment to sustainable investment areas, of which VinFast is the most prominent. Our aim is to make VinFast a global smart electric vehicle manufacturer that offers environmentally friendly means of transport to the masses.”

The lead arrangers and bookrunners for the deal are BNP Paribas, Cathay United Bank, Credit Suisse, HSBC, Maybank and Taipei Fubon, with Credit Suisse acting as facility agent and BNP Paribas and HSBC acting as joint green finance coordinator, the statement said.

Tim Evans, general director of HSBC Vietnam, said the bank was continuing to support Vingroup’s sustainable and green development goals, saying the group was a “forward-thinking business” contributing to the country’s efforts to tackle climate change.

Olivier Rousselet, general director of BNP Paribas Vietnam, said Vingroup is contributing to the development of a sustainable financing market and to Vietnam’s efforts to become a low-carbon economy.

Vingroup operates in technology, industry and services. The industrial group focuses on producing electric cars, under the VinFast brand, and smart electronics, under the VinSmart brand.

The trade and services segment operates hotels and resorts under the Vinpearl brand, and also has residential and commercial real estate operations, and operates the VinBus Transport Service.