VinFast Enters Into Standby Equity Subscription Agreement of Up to $1 Billion With Yorkville Advisors
Vietnamese electric vehicle maker VinFast and global investment fund manager Yorkville Advisors have entered into a standby equity subscription agreement of up to $1 billion.
Under the terms of the agreement, VinFast has the option, but not the obligation, to require Yorkville to subscribe for up to $1 billion worth of ordinary shares in VinFast at any time during the 36-month term of the agreement.
“This new source of equity funding provides us with valuable optionality and access to capital to continue to expand our business on a global scale. While we are under no obligation to draw on the full amount, the transaction aligns with our goals of opportunistic capital raising while adding liquidity to our shares over time,” David Mansfield, CFO of VinFast said.
The agreement provides VinFast with valuable optionality and access to capital to continue expanding its business globally. While VinFast is under no obligation to draw on the full amount, the transaction aligns with its goals of opportunistic capital raising while adding liquidity to its shares over time.
“VinFast is a true leader in EVs. We are excited for this opportunity to be a part of VinFast’s growth and development, and we look forward to seeing VinFast’s continued success in the EV market. We couldn’t be prouder of our partnership with VinFast in its mission for a greener future,” Mark Angelo, Founder and President of Yorkville, commented.
Yorkville’s investment in VinFast is a sign of confidence in the company’s growth potential. VinFast is one of the leading EV makers in Vietnam, and it is rapidly expanding into other markets, including the United States and Europe.
The agreement between VinFast and Yorkville is a significant development for both companies. It provides VinFast with the financial resources it needs to continue its rapid growth, and it gives Yorkville exposure to one of the most promising EV markets in the world.
The agreement is also a positive sign for the EV industry as a whole. It shows that there is strong investor interest in EV companies, and it helps to validate the long-term growth prospects of the EV market. Vinfast is listed in the NASDAQ as VFS.
In April 2023, VinGroup’s Chairman Pham Nhat Vuong, and VinFast entered into a capital funding agreement, under which VinFast would receive grants of up to VND24,000 billion (~$1 billion) from Mr. Vuong, as well as up to VND12,000 billion (~$500 million) in non-refundable grants and up to VND24,000 billion (~$1 billion) in loans from Vingroup, in order to support VinFast’s growth and global expansion plans.
“In addition to existing funding commitments, it provides financial flexibility to fund our growth. We will continue to evaluate other capital markets transactions and sources of fundraising as VinFast continues to grow,” Mansfield concluded.
Yorkville Advisors is a global investment manager for private funds, specializing in structured debt and equity investments. Their investment approach prioritizes management, business fundamentals, and trading metrics. With diverse sector and geography mandates, it often acts as the sole investor in capital raises, enabling controlled exit strategies and has been providing growth and acquisition capital to public companies since 2001, according to their website.
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