Vietnam-based car manufacturer VinFast has tapped two banks to raise at least $4bn to construct its electric vehicle factory in North Carolina, US, reported Reuters.
The carmaker has tapped Credit Suisse and Citigroup to fund its expansion plans in the US.
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It expects to compete with established automakers and startups in the electric SUVs segment in the US.
VinFast’s parent company Vingroup has hired Credit Suisse to arrange the issue of offshore securities in an effort to raise $2bn.
Citigroup Global Markets has tapped to serve as an advisor on transactions carrying the same value.
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According to the Vingroup statement, each of these agreements “could include debt or private placements of equity”.
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By GlobalDataTo be built on an area of 800ha, the North Carolina factory is expected to initially produce 150,000 electric vehicles annually.
It is expected to commence production by 2024, and create around 7,500 jobs.
Meanwhile, the company is set to open its first overseas showrooms in California in the coming days.
Earlier this year, Vingroup, which has a market value of $11.4bn, stated that an initial public offering for VinFast may be pushed to until next year because of volatile market conditions.
Vingroup has businesses in retail, real estate and resorts.
VinFast was set up in 2017, with its first combustion-engine vehicles launching two years later before transitioning solely to electric vehicles last year.
Meanwhile, VinFast is also preparing to roll out its first overseas car model as well as a car showroom network in Europe and the US.
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Image: The North Carolina factory is expected to initially produce 150,000 electric vehicles annually. Credit: Mikes-Photography from Pixabay.
