SCIC pumps $300m to buy Vietnam Airlines equity

Thursday, Sep 16, 2021 11:25

Vietnam Airlines airplane at Van Don Airport in Quang Ninh Province. — VNA/VNS Photo

The State Capital Investment Corporation (SCIC) has paid nearly VND6.9 trillion (US$300 million) to secure at least 31.08 per cent equity of the national flag carrier Vietnam Airlines.

The deal was inked on Monday.

This purchase was one of two solutions in the rescue package worth VND12 trillion ($522 million) approved by the National Assembly last year to help the airline make it through the pandemic.

According to the plan, Vietnam Airlines was allowed to issue additional shares worth VND8 trillion at the face value of VND10,000 apiece to existing shareholders to increase charter capital. With the current holding of 86.19 per cent of its equity, the State, through SCIC could purchase up to 689.5 million shares.

Investment from Viet Nam’s state-owned investment fund will add to the airline’s working capital, helping maintain its business activities and improve its short-term solvency. The airline said it would soon complete the restructuring plan to make it viable in the new situation and maintain its leading position in the aviation industry.

Previously in July, Vietnam Airlines signed a credit deal worth a total VND4 trillion with three commercial banks with zero-interest loans refinanced by the State Bank of Viet Nam.

Vietnam Airlines’ shares (HVN) rose for seven consecutive sessions before declining more than five per cent on Wednesday at around VND27,100 per share. — VNS

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