HÀ NỘI — VinFast, the Vietnamese electric vehicle manufacturer, announced the successful issuance of VNĐ2.5 trillion (US$95.5 million) in bonds through the release of the VIF12502 bond series. 

This issuance marks a significant step for the company in its ongoing efforts to bolster its financial position and support its growth strategy.

According to the Hanoi Stock Exchange (HNX), VinFast issued a total of 25,000 bonds, each with a face value of VNĐ100 million. The bonds have a maturity period of three years and are set to mature on June 30, 2028.

On June 25, the Board of Directors of Vingroup, VinFast's parent company, approved a resolution to provide a payment guarantee for the bonds. 

This guarantee involves using assets owned by Vingroup to back the bond issuance, which is non-convertible and not accompanied by warrants, solidifying VinFast's obligation to repay the bonds directly.

In a proactive move to manage its existing liabilities, VinFast also made headlines in late May by repurchasing nearly VNĐ2.05 trillion worth of principal and interest from four previous bond issuances (VIFCB2225001, VIFCB2225002, VIFCB2225003 and VIFCB2225004). 

These bonds, issued in May 2022, had a maturity of 36 months and an interest rate of 9.26 per cent per year.

Despite these positive fundraising efforts, VinFast's financial situation reveals significant challenges. As of December 31, 2024, the company's equity stood at VNĐ10.96 trillion, a decrease of VNĐ4.29 trillion compared to the previous year. 

The firm reported a net loss of approximately VNĐ31.94 trillion for 2024, following a loss of nearly VNĐ18.26 trillion in 2023. Cumulatively, the company's losses reached VNĐ129.79 trillion by the end of 2024.

Total liabilities as of the end of 2024 amounted to VNĐ202.01 trillion, with bank loans decreasing from VNĐ42.59 trillion to VNĐ39.28 trillion. 

The company's bond liabilities also declined to VNĐ13.54 trillion, while other payables surged by 44 per cent to VNĐ149.19 trillion. — BIZHUB/VNS