Vietnamese conglomerate Vingroup is pursuing a private credit loan of $500 million to grow its electric vehicle (EV) charging stations across the region, sources familiar with the matter revealed. The initiative aims to support the increasing demand for EV infrastructure, reflecting the group's commitment to the sector’s growth.

The company approached private credit funds in late September to participate in this financing, with the loan expected to carry an interest rate around 10% or lower, according to anonymous sources. This move is part of a broader strategy by Vingroup and its subsidiaries to secure capital for diverse business interests, including real estate and private education.

VinFast Auto, Vingroup's EV division, recently secured a $150 million loan from Barclays for working capital and drew on a $510 million private credit facility in July. These financial activities highlight the rising investment momentum in the EV industry globally.

Investment in EV charging infrastructure worldwide reached $148 billion by the end of last year and is projected to surge to $386 billion by the decade’s end, as reported by BloombergNEF. China leads this market with over 850,000 public charging installations last year—more than double the global total.

Pham Nhat Vuong, chairman of Vingroup and founder of VinFast, established a separate business named V-Green last year to develop a network of charging stations. Vuong owns 90% of V-Green, which announced plans in May to co-invest $300 million with four other companies to build charging infrastructure across Indonesia.

When contacted, a Vingroup representative declined to comment on the loan deal but confirmed the company is "reviewing and implementing various fundraising options as part of our normal business operations to support development plans, including electric vehicle charging infrastructure."

PHOTO: FREEPIK

This article was created with AI assistance.