Italy’s export-credit agency SACE has guaranteed a $200 million loan for VinFast‘s Vietnamese unit, in order to expand Italian exports to Vietnam as the electric-vehicle (EV) maker seeks capital.

In a statement on Tuesday, SACE said the financing for VinFast Vietnam, a subsidiary of Nasdaq-listed VinFast Auto, was arranged by Barclays, BNP Paribas, and HSBC as lenders, with HSBC also coordinating the export-credit structure. SACE, owned by Italy’s finance ministry, provided the guarantee.

VinFast Auto is the EV arm of Vietnamese conglomerate Vingroup.

VinFast Vietnam will use the money for general corporate purposes, including investment and research and development to support its business plan, SACE said.

The loan was made under SACE’s “Push Strategy,” a program that backs financing for large foreign buyers in exchange for their commitment to buy more goods and services from Italian suppliers. The deal would strengthen commercial ties between Vingroup and Italian firms in sectors such as automotive, machinery, infrastructure, and energy, SACE highlighted.

Mario Melillo, SACE’s chief network officer, called the transaction a milestone in cooperation with Vingroup and in the agency’s partnership with HSBC.

Tim Evans, HSBC’s Vietnam chief executive, said it was the fourth deal HSBC had completed with SACE in Vietnam.

Italy’s ambassador to Vietnam, Marco della Seta, said the agreement bridged Italian technology and Vietnam’s development.

SACE is Italy’s export-credit agency, wholly owned by the Ministry of Economy and Finance, with a guaranteed portfolio of about €290 billion. VinFast Auto, listed on Nasdaq, is the electric-vehicle arm of Vietnam’s Vingroup.

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