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Vietjet signs $200mn international loan

Released at: 20:38, 20/11/2019

Vietjet signs $200mn international loan

Photo: Vietjet

Loan to come from Woori Bank, ICBC, and KEB Hana Bank.

by Ngoc Lan

Vietjet Air signed an international credit loan worth over $200 million in a medium and long-term financing program with Woori Bank, ICBC, and KEB Hana Bank on November 15.

Woori Bank is the Mandated Lead Arranger, and Vietjet also entered into a $140 million credit financing agreement with the bank. The program will arrange an additional $100 million with another international bank shortly.

These credit agreements reinforce the growing relationship between Vietjet Air and regional banks as it diversifies its capital sources. With the carrier’s high growth potential, the financing agreements help increase its medium and long-term foreign currency sources to meet needs in expanding its modern fleet in line with the company’s long-term international growth strategy.

Vietjet has been leading the domestic aviation market and continues to strengthen its international market presence. Over the past five years its revenue and profit have grown at an average of 50 per cent.

According to AirFinance Journal’s rankings in 2019, Vietjet scored a BBB rating and was in the world’s top 50 airlines in terms of financial health for the second consecutive year. The EBITDAR margin was scored at A by AirFinance, and Vietjet ranked in the top 3 airlines in the world. Its current liquidity ratio is 1.3, while its debt to equity ratio is 0.6, of which equity is $640 million and total assets $2 billion. On November 14, Vietjet was awarded the Asia Pacific LCC Airline of the Year by CAPA.

The parties to these international credit agreements look forward to greater cooperation opportunities in Vietjet’s financing resources in the future.

The new-age carrier has not only revolutionized Vietnam’s aviation industry but also been a pioneering airline across the region and around the world. With a focus on cost management and effective operations and performance, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diverse services to meet customer demands.

It operates some 400 flights daily and has carried nearly 100 million passengers to date across an expansive network that includes destinations throughout Vietnam and international destinations in India, Japan, South Korea, Taiwan (China), Singapore, Hong Kong (China), Indonesia, Thailand, Malaysia, Myanmar, Cambodia, and China.

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