VinFast Auto Shares Are Falling Today As EV Company Taps New Source Of Equity Funding

VinFast Auto Ltd.  VFS shares are trading lower after the Vietnam-based electric vehicle (EV) manufacturer inked an equity subscription agreement with YA II PN, Ltd. (Yorkville) for up to $1 billion.

Under the deal, VinFast has the option, but not the obligation, to require Yorkville to subscribe for up to $1 billion of ordinary shares in VinFast at any time during the term of the Subscription Agreement, subject to certain conditions and limitations.

The subscription agreement has a term of 36 months and will terminate automatically on the earlier of Nov. 1, 2026 or when Yorkville has subscribed for ordinary shares equal to the Commitment Amount. 

VFS plans to use the fund to develop manufacturing facilities working capital and make strategic investments and acquisitions, among others.

“This new source of equity funding provides us with valuable optionality and access to capital to continue to expand our business on a global scale," VinFast CFO David Mansfield said. "While we are under no obligation to draw on the full amount, the transaction aligns with our goals of opportunistic capital raising while adding liquidity to our shares over time.”

The company recently agreed to acquire a 99.8% stake in VinES Energy Solutions, or VinES. It is also reportedly setting its sights on expansion into Southeast Asia, with Indonesia as the starting point.

Price Action: VFS shares are trading lower by 4.42% to $5.43 on the last check Friday.