Vingroup in talks with investors to raise $1 billion for its car unit: sources

SINGAPORE Reuters -- Vietnam's largest conglomerate Vingroup is in talks with investors, including Qatar's sovereign fund and BlackRock, to raise $1 billion in equity for its car unit, three sources aware of the matter said.

The fundraising exercise comes after VinFast, Vingroup's automobile arm, is betting big on the U.S. market, where it hopes that its electric SUVs and battery leasing model will be enough to woo consumers away from the likes of Tesla and General Motors.

Sources who declined to be identified as negotiations are still ongoing, said Vingroup is in discussions for fundraising ahead of VinFast's potential US listing that could take place as early as next year.

The sources said the company could finalise the private fundraising deal as early as next month. Sources said that Vingroup is in talks with private equity firms.

They said Vingroup is in advanced talks with Qatar Investment Authority QIA, the country's $300 billion sovereign wealth fund, which has been diversifying its investments from its core European and U.S. markets to Asia.

Vingroup didn't respond to QIA's request for comment. BlackRock didn't respond immediately to a request for comment.