Vingroup's hospitality arm, Vinpearl JSC, is pursuing a private credit loan of up to $300 million for refinancing, according to people familiar with the matter. The four-year debt would be structured as convertible preferred shares offering dividends and potential upside when certain milestones are achieved.

The proposed financing comes as private credit markets in the US face turmoil from high-profile setbacks, with lenders marking down investments and funds restricting redemptions. Asia's market remains more insulated due to limited software exposure, conservative lending practices, and closed-ended vehicles. Vinpearl has attracted interest from international institutions bullish on the hospitality industry and the company's broader ecosystem.

This marks another significant borrowing by the Vietnamese conglomerate, which previously secured $150 million for its EV unit VinFast Auto in September and raised $510 million in private debt two months earlier. Some of Vingroup's loans are backed by standby letters of credit from Vietnamese banks, which carry hidden risks. Vinpearl, which listed on the Ho Chi Minh Stock Exchange last year, operates 35 hotels and resorts across Vietnam along with amusement parks and entertainment complexes.