ACV secures $1.8 billion in syndicated loans for Long Thanh Airport, ensuring on-schedule completion by 2026

May 09, 2024 | 14:27

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Airports Corporation of Vietnam (ACV) has secured a $1.8 billion loan from three state-owned banks over a 20-year term to finance the construction of Long Thanh International Airport.

ACV secures $1.8 billion in syndicated loans for Long Thanh Airport, ensuring on-schedule completion by 2026

ACV has confirmed that under a board-approved resolution signed by chairman Lai Xuan Thanh on May 6, Vietcombank, VietinBank, and BIDV will extend a syndicated loan of $1.8 billion to finance Component 3 of the Long Thanh International Airport project.

The credit agreements were executed with Vietcombank, acting as the lead bank and asset management agent, alongside VietinBank and BIDV, who are participating as co-lenders. This funding aims to cover legitimate financing needs associated with the project's investment, with a repayment term from these state-owned banks set at 20 years. Security for the loan includes assets arising from the project, covering both existing and prospective collaterals.

Phase 1 of Long Thanh International Airport is projected to require an overall investment of about VND110 trillion (over $4.6 billion), which includes four component projects. Component 3, managed by ACV, involves critical airport infrastructure.

Thanh of ACV noted, "Despite three challenging pandemic years, the company maintained stable revenue and profits, aided by facilitated debt rescheduling."

ACV has also adjusted its foreign currency borrowing strategy. Originally intending to secure $2.1 billion, the company recalibrated its funding plans, reducing its foreign debt intake to between $1.7 and $1.8 billion.

Thanh affirmed ACV's confidence in its financing strategy, mentioning additional borrowing capacity if needed. He reassured stakeholders that the Long Thanh Airport project would proceed as planned, with operational commencement targeted for Q4 2026.

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