VINFAST, Vietnam’s “national car brand” and electric vehicle manufacturer, and global investment fund manager Yorkville Advisors have entered into an agreement for standby equity subscription, totaling up to $1 billion. Within this agreement, VinFast holds the option, although not the obligation, to call upon Yorkville to subscribe to up to $1 billion worth of ordinary shares in VinFast during the 36-month duration of the arrangement.
David Mansfield, VinFast’s CFO, emphasized the significance of this new source of equity funding, providing them with valuable flexibility and access to capital for global expansion. While VinFast is not compelled to utilize the entire amount, this agreement aligns with their strategy of opportunistic capital raising, simultaneously enhancing liquidity in their shares over time.
Mark Angelo, Founder and President of Yorkville, expressed enthusiasm about their partnership with VinFast and commended VinFast’s leadership in the electric vehicle (EV) industry. Yorkville’s investment in VinFast reflects their confidence in the company’s growth potential. VinFast, one of Vietnam’s leading EV manufacturers, is rapidly expanding into various markets, including the United States and Europe.
This agreement holds significant implications for both VinFast and Yorkville. It equips VinFast with the necessary financial resources to sustain its rapid growth and introduces Yorkville to one of the most promising EV markets globally. It also serves as a positive signal for the entire EV industry, highlighting strong investor interest and reaffirming the long-term growth prospects of the EV market.
VinFast is publicly listed on the NASDAQ as VFS and has previously secured funding from VinGroup’s Chairman Pham Nhat Vuong and Vingroup to support its global expansion. David Mansfield added that this agreement, in addition to existing funding commitments, offers financial flexibility to fund their ongoing growth. VinFast plans to explore other capital market transactions and fundraising sources as they continue to expand globally.
Yorkville Advisors, a global investment manager specializing in structured debt and equity investments, plays a pivotal role in facilitating this strategic move. With a history of providing growth and acquisition capital to public companies, their diverse sector and geography mandates enable controlled exit strategies. This collaboration further underscores VinFast’s dedication to global expansion and their proactive approach to raising capital.