VinFast has signed a long-term syndicated loan agreement to finance the construction of its electric vehicle assembly plant in Indonesia.

VinFast announced on May 2 that the agreement, with the state-owned Bank Negara Indonesia (BNI) and PT Bank Maybank Indonesia Tbk (Maybank), will provide critical long-term funding to support VinFast's global expansion strategy and expand its production capabilities. The company noted that this underscores its strong reputation and growth potential to major partners in Indonesia.

Under the terms of the agreement, BNI will be the lead arranger of the financing and will handle the underwriting for the syndicated loan of $110 million. The loan is intended to finance the construction of PT VinFast Automobile Indonesia's electric vehicle (EV) manufacturing plant. Of the total syndicated loan facility of $110 million, BNI will finance $90 million, with the remainder to be provided by Maybank.

Moreover, the parties will proceed with an additional $80 million extension facility.

VinFast and BNI executed an MoU in March 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.

Agung Prabowo, director of wholesale and international banking of BNI said, "This financing highlights BNI's commitment to Indonesia's green transition. We have faith in VinFast's vision and their dedication to innovation, as well the significant potential of the EV industry. The role of financial institutions in channelling investment capital towards this sector will be a crucial in driving Indonesia's progress towards achieving a green and sustainable economy."

Pham Sanh Chau, CEO of VinFast Asia, said, "We are honoured to receive the support of Indonesia's leading financial institutions, BNI and Maybank. We firmly believe this will be a vital catalyst for VinFast's expansion in Indonesia, where our manufacturing facility will deliver smart, eco-friendly mobility solutions, while creating jobs and supporting the growth of Indonesia’s EV industry."

In July last year, VinFast broke ground on its EV assembly plant in Subang with operations planned to commence in the second half of this year. This strategically positioned facility is projected to become a pivotal manufacturing hub for VinFast's EVs, serving both Indonesian and export markets, while simultaneously bolstering the local automotive industry's supply chain.