Brian Jeffrey
On October 9, Vingroup’s Board of Directors revealed a resolution concerning the security for VinFast bonds.
This resolution, led by Chairman Pham Nhat Vuong, confirms that Vingroup will offer guarantees by pledging its assets to support the corporate bonds issued privately by VinFast Manufacturing and Trading Co., with a maximum total value of 6.5 trillion VND in 2024.
VinFast operates under Vingroup and is based in the Dinh Vu – Cat Hai Economic Zone in Hai Phong.
The Board has empowered the CEO of Vingroup, or an appointed representative, to determine the guarantee’s specifics, including asset pledges linked to each VinFast bond package, and to finalize the related contracts or agreements endorsed by the Board.
Vingroup has a history of guaranteeing VinFast bonds.
Following his success in real estate, billionaire Pham Nhat Vuong has made significant investments in automobile manufacturing, shifting from gasoline to electric vehicles. In the past year, he has made a notable entry into the U.S. market, listing VinFast shares on Nasdaq in August 2023 and starting the construction of an electric vehicle factory in the U.S.
Recently, companies within Vuong’s network have made several important announcements, causing notable fluctuations in the “Vin” stock group.
The Vingroup stock group (VIC) has experienced a significant rise, with some trading sessions peaking at the start of August after Vinhomes JSC (VHM) declared a plan to repurchase 370 million shares, amounting to about 8.5% of its total outstanding shares for around 13 trillion VND.
VIC stocks increased from 40,000 VND to a peak of 45,000 VND before settling at 41,600 VND on October 9.
By mid-2024, the Green and Smart Mobility (GSM) taxi service is anticipated to launch over 30,000 electric taxis across 45 locations, partnering with numerous businesses.
