Vingroup seeks loan to buy KKR's Vinschool stake

If the deal materialises, it will help KKR exit its investment in Vinschool. — Bloomberg
Hanoi: Vietnamese conglomerate Vingroup JSC is seeking an around US$300mil private credit loan to purchase KKR & Co's stake of about 38% in its education subsidiary Vinschool, according to people familiar with the matter.
UBS is approaching private credit funds to garner interest for the proposed loan, the people said, who asked not to be identified discussing private matters.
If the deal materialises, it will help KKR exit its investment in Vinschool. KKR, UBS and Vingroup declined to comment.
The financing adds to Asia's growing private credit space, a US$1.7 trillion global asset class that's luring more players.
The education sector has been one of the beneficiaries. XCL Education, a school owner and operator backed by private equity firm TPG, recently obtained a US$400mil private credit loan to refinance its existing debt, Bloomberg News reported.
In 2023, HPS Investment Partners, KKR & Co and Nomura jointly provided a S$265mil uni-tranche facility to The Learning Lab also for the same purpose. Vingroup has tapped the private-debt markets before.
In 2023, its real estate arm Vinhomes JSC obtained a US$250mil private loan from a group of lenders including SeaTown Holdings International, Deutsche Bank, Tahan Capital and Varde Partners.
Vinschool is a kindergarten to 12th grade education system, operating under and funded by parent company, Vingroup. — Bloomberg

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US-China renewed dialogue seen lifting Malaysia's trade outlook

New Straits Times

2 hours ago

New Straits Times

US-China renewed dialogue seen lifting Malaysia's trade outlook

KUALA LUMPUR: Renewed trade talks between the United States and China are expected to boost investor confidence and strengthen Malaysia's trade momentum, an economist said. Putra Business School economist Professor Dr Ahmed Razman Abdul Latiff said any move to reduce tariffs between the two economic giants could steady the sails for Malaysia by boosting confidence and trade visibility. "If the US and China agree to resume talks and reach a deal to reduce tariffs on each other, Malaysia's trade environment and investor sentiment will become less volatile and uncertain," he told Business Times. "This would boost investor confidence and encourage continued investment in Malaysia," Razman added, noting that while tensions persist, Malaysia is taking steps to shield its economy. Razman also expects Malaysia's export markets and supply chains to remain competitive, although growth may moderate slightly. This, he said, is supported by ongoing efforts to diversify export destinations, grow the country's trading partnerships and enhance intra-Asean trade. Should US-China negotiations break down again, he said the impact on Malaysia would likely remain limited. "There will be some negative impact but it will be minimum as majority of Malaysia's products such as semiconductor will not be subjected to higher tariffs by the US," he said. Trump and Xi held a 90-minute phone conversation on Thursday, marking their first direct dialogue since Trump resumed office. The call, widely viewed as a positive step towards easing the prolonged trade tensions between the world's two largest economies, laid the groundwork for renewed bilateral cooperation and the resumption of high-level trade negotiations. Both leaders agreed to restart trade talks, with senior US officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, expected to meet their Chinese counterparts. The timing and venue for these negotiations have yet to be finalised but are anticipated to be announced in the coming weeks. Although the call sparked market optimism, US stocks closed lower as a sharp decline in Tesla shares outweighed the positive momentum from progress in US-China tariff negotiations. Tesla shares plunged over 14 per cent in heavy trading as the escalating public feud between Trump and businessman Elon Musk rattled investors, wiping out about US$150 billion in market value. Razman downplayed concerns over the spat saying, "The impact on Malaysia will be minimal, as the fallout primarily affects the SpaceX program and Tesla production."

Billion-dollar battery plant pauses construction in US amid electric vehicle, tariff uncertainty

The Sun

3 hours ago

The Sun

Billion-dollar battery plant pauses construction in US amid electric vehicle, tariff uncertainty

NEW YORK: A Japanese company has halted construction on a US$1.6 billion factory in South Carolina to help make batteries for electric BMWs, citing 'policy and market uncertainty,' reported Xinhua quoting the Associated Press. 'While Automotive Energy Supply Corp. (AESC) didn't specify what those problems are, South Carolina's Republican governor said the company is dealing with the potential loss of federal tax breaks for electric vehicle buyers and incentives for EV businesses as well as tariff uncertainties from President Donald Trump's administration,' noted the report. 'What we're doing is urging caution -- let things play out because all of these changes are taking place,' Governor Henry McMaster said. AESC announced the suspension in construction of its plant in Florence on Thursday. 'Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,' the company's statement said. AESC promised to restart construction, although it didn't say when, and vowed to meet its commitment to hire 1,600 workers and invest US$1.6 billion. The company said it has already invested US$1 billion in the Florence plant. The battery maker based in Japan also has facilities in China, the United Kingdom, France, Spain and Germany. In the United States, AESC has a plant in Tennessee and is building one in Kentucky. The statement didn't mention any changes with other plants.