Eximbank gives wings to airlines

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The Ho Chi Minh City-based bank will own an 11 per cent stake in private carrier Air Mekong by becoming its strategic investor following an agreement signed on June 6.

The two-year-old airline will raise its registered capital to VND600 billion ($28.8 million) this year.

It will also finance Air Mekong in buying aircraft and chartering planes, in infrastructure development and commercial.

Meanwhile, in May Eximbank signed a credit agreement to lend $100 million to Vietnam Airlines to help it purchase four Airbus A321 passenger jets this year.

The 10-year loan will help the national carrier take delivery of the four aircraft, part of its order for 26 Airbus planes during 2011-2014.

This is the first contract between the lender and Vietnam Airlines.

Eximbank CEO Truong Van Phuoc said the bank would  continue to fund the carrier’s long-term investment activities.