Tien Phong Bank lends $21m for VietJet expansion

Thursday, Sep 18, 2014 16:56

Tien Phong Bank has become the first local bank in Vietnam to ink a financial agreement with VietJet. – VNS Photo

HCM CITY (Biz Hub) – Tien Phong Bank is providing VietJet with US$21 million in credit to finance the expansion plans of Viet Nam's fastest growing airline.

Officials of the bank and the carrier signed the financial agreement for the credit, which forms part of a sale-leaseback deal, in ceremonies held here today.

Under the agreement, Tien Phong will also supply VietJet with larger amounts of credit to finance future sale-leaseback deals.

VietJet previously signed financial agreements with GECAS of the United States, BNP Paribas of France, Jackson Square of Japan and other banks as part of aircraft sale-leaseback deals. These agreements are now in process, said VietJet officials.

Meanwhile, VietJet today welcomed the latest addition to its fleet: a brand new Airbus A320 Sharklet (VNA-696), which travelled from the Airbus base in Toulouse, France to Tan Son Nhat International Airport here.

With the new plane, the airline now has a fleet of 16 Airbus jets operating on a network of 27 domestic and international routes. – VNS

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