China dominates the global public charging market with over 850,000 installations last year, more than double the installations in the rest of the world
[HANOI] Vietnamese conglomerate Vingroup is seeking a US$500 million private credit loan to expand its electric vehicle (EV) charging station network across the region, according to sources familiar with the matter.
The group approached private credit funds in late September seeking participation, the sources said, declining to be identified speaking on private matters. The interest rate for the deal, which is still in early stages, is expected to be around 10 per cent or less, they added.
The deal is the latest in a string of borrowings by Vingroup and its subsidiaries for interests ranging from real estate to private education. VinFast Auto, the EV business, secured a US$150 million loan from Barclays for working capital last month and tapped a US$510 million private credit facility in July.
It comes as investment in the sector heats up across the globe. Cumulative investment in EV charging infrastructure reached US$148 billion at the end of last year and is expected to soar to US$386 billion by the end of the decade, according to research firm BloombergNEF. China dominates the global public charging market with over 850,000 installations last year, more than double the installations in the rest of the world.
Pham Nhat Vuong, chairman of Vingroup and founder of VinFast, last year set up a separate business to develop its network of charging stations. That business, known as V-Green, is 90 per cent owned by Vuong and said in May that it would jointly invest a total of US$300 million with four other companies to develop charging stations throughout Indonesia.
A Vingroup representative declined to comment on the deal, but said that the company “reviews and implements various fundraising options as part of our normal business operations to support development plans – including EV charging infrastructure.” BLOOMBERG
