Vietnamese automaker VinFast Auto has secured a long-term syndicated loan agreement with Indonesian state-owned Bank Negara Indonesia and Bank Maybank Indonesia to finance the construction of its new battery electric vehicle (BEV) assembly plant in Subang, West Java province. This agreement follows an earlier Memorandum of Understanding (MOU) between VinFast and BNI, focusing on collaborative investment, development, and financial solutions to strengthen VinFast’s green ecosystem in Indonesia.
The groundbreaking for the Subang BEV plant took place in July 2024, with completion scheduled for the second half of 2025. The plant will not only serve the local market but also cater to export demands. VinFast is committed to establishing a local supply chain and developing a BEV recharging network in Indonesia.
The syndicated loan agreement is valued at IDR 1.85 trillion (US$113 million) with an additional US$80 million accordion facility. This funding will support VinFast’s global expansion strategy and enhance its production capabilities. The loan highlights VinFast’s strong reputation and growth potential among major partners in Indonesia.
BNI will underwrite the syndicated loan of IDR 1.85 trillion, providing IDR 1.51 trillion (US$92 million) of the funding, with Maybank contributing the rest. The two banks will also offer an additional US$80 million loan extension facility. The loan is specifically intended to finance the construction of PT VinFast Automobile Indonesia’s electric vehicle manufacturing plant.
Agung Prabowo, BNI’s Director of Wholesale and International Banking, emphasized the bank’s commitment to supporting the green transportation transition in Indonesia through strategic collaborations with innovative BEV manufacturers like VinFast. VinFast Asia’s CEO, Pham Sanh Chau, expressed gratitude for the support from Indonesia’s leading financial institutions, believing it will catalyze VinFast’s expansion in the country and contribute to the growth of the electric vehicle industry.
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