Vietnam Airlines has signed a credit agreement with the Vietnamese Commercial Equity Bank of Southeast Asia for a maximum amount of 2,000 billion dinars ($ 87 million).
Part of this amount will be disbursed at the start of the month as a working capital loan for production and commercial activities, “to alleviate the difficulties faced by Vietnam Airlines due to the Covid-19 pandemic,” said today hui SeABank in a statement.
Separately, Vietnam Airlines and SeABank have signed a three-way strategic cooperation with local real estate developer BRG Group “on a wide variety of areas to improve customer experience and contribute to the socio-economic sustainability of the country”, according to the same. communicated.
SeaBank, Vietnam Maritime Commercial Joint Stock Bank and SHB Bank have pledged to provide the national carrier with up to D4 trillion in loans, which are to be refinanced without interest by Vietnam’s central bank, according to a June 21 report from Vietnamese state media Dan Viet.
The central bank first offered the loan in March, and it was to be provided through credit institutions.
The cash-strapped airline had put 11 of its older Airbus A321ceo on sale on June 1 to raise funds amid the pandemic and as part of its older aircraft replacement program.
The Vietnamese Ministry of Planning and Investment had warned that Vietnam Airlines, with debt of 6.24 trillion dinars, was on the verge of bankruptcy and risked legal action due to its high level of debt, according to the report. a June 18 report released by the state agency. Tien Phong newspaper.
According to the same report, commercial banks were unwilling to extend credit to the airline even though the government approved a 12 trillion dinar support plan last November.
In a December 30, 2020 filing on the Ho Chi Minh Stock Exchange, Vietnam Airlines said it plans to issue 8 trillion dinars of ordinary shares for sale to existing shareholders to increase working capital and repay the debt.
The airline is majority owned by the Vietnamese government, which owns 86.2% of the capital, and has among its shareholders ANA Holdings, which owns 8.77% of the capital, according to its 2020 annual report.