VinFast signs 190 million USD loan to finance construction of its plant in Indonesia
Vietnamese electric vehicle (EV) maker VinFast has secured a long-term syndicated loan agreement worth 1.85 trillion IDR (110 million USD) and an 80 million USD accordion facility from two Indonesian banks to finance the construction of its plant in Indonesia.
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The two banks are state-owned Bank Negara Indonesia (BNI) and PT Bank Maybank Indonesia Tbk (Maybank).
Under the agreement, BNI will be the lead arranger of the financing and will handle the underwriting for the syndicated loan of 1.85 trillion IDR. This loan is intended to finance the construction of PT VinFast Automobile Indonesia's EV manufacturing plant in Subang, West Java.
Of the sum, BNI will finance 1.51 trillion IDR, while the remainder be provided by Maybank.
In addition, the parties will proceed with the additional 80 million USD extension facility.
Previously, VinFast and BNI signed a memorandum of understanding (MoU) for collaborative investment, development, and provision of financial solutions to bolster VinFast's green ecosystem in Indonesia. This initiative aims to facilitate a seamless green transition for Indonesian consumers, enabling easier adoption of EVs.
This will be a vital catalyst for VinFast's expansion in Indonesia, continuously enhancing the firm's global production capabilities to meet the ever-increasing demand for the EV transition, said CEO of VinFast Asia Pham Sanh Chau.
In July 2024, VinFast broke ground on its EV assembly plant in Subang, with operations planned to commence in the second half of 2025. This strategically positioned facility is projected to become a pivotal manufacturing hub for VinFast's EVs, serving both Indonesian and export markets while bolstering the local automotive industry's supply chain.
Furthermore, VinFast is steadily solidifying its position and expanding its footprint in Indonesia by launching and delivering a diverse portfolio of all-electric vehicles, including RHD variant of VF 3, VF 5, and VF e34 models.
(Source: VNA)
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