Yorkville invests $49 million in VinFast

According to Lanya

Investing.com – Last week, electric vehicle company VinFast (NASDAQ: ) signed a contract to sell $50 million in bonds that are convertible into common stock for the Yorkville-managed YA II PN investment fund.

If not converted, the bonds will mature on July 1, 2024. The conversion price is US$10 per share. On Nasdaq, VFS shares have been trading below $10 for the past three months and currently trade at $7.05.

VinFast’s obligations with respect to the convertible bonds will be guaranteed by Vingroup (HM:) under a global guarantee agreement signed on the date of issuance of the bonds.

In addition, VinFast is expected to receive approximately US$51 million in funding from Asian Star Trading and Investment Company (Asian Star), a legal entity owned by the company’s majority shareholder and chairman Pham Nhat Vuong.

Asian Star is funded by the company’s sale of VinFast shares to Yorkville on December 29, 2023, under the terms of a previously signed agreement between the parties.

Previously, at the end of October 2023, VinFast announced that it had signed an agreement with Yorkville Fund to purchase VFS shares. Accordingly, subject to the terms and conditions of the 36-month agreement, VinFast has the right to issue up to $1 billion worth of VFS common stock to Yorkville at any time.

Yorkville is an American investment management fund with more than 20 years of experience in investing in listed companies. Yorkville’s investment criteria focus on management team, business fundamentals and stock trading indexes.

In terms of funding plans, within the framework of the recently held COP28, the U.S. International Development Finance Corporation (DFC) signed a letter of intent (LOI) to sponsor VinFast with US$500 million to promote the development of transportation and electrochemistry.

This event affirmed the commitment of both parties to sustainable transportation development and made a positive contribution to the Vietnam-US comprehensive strategic partnership.