SCIC to hold 31.08 per cent of charter capital of Vietnam Airlines
14:59 | 14/09/2021 Print Article
State Capital Investment Corporation bought Vietnam Airlines (HSX: HVN) shares to hold at least 31.08 per cent of the charter capital to help the company overcome its difficulties amid the COVID-19 pandemic.
|Vietnam Airlines negative equity because of the impact of the COVID-19 pandemic |
On September 13, State Capital Investment Corporation (SCIC) disbursed VND6.9 trillion ($300 million) to buy HVN shares, holding at least 31.08 per cent of the charter capital of Vietnam Airlines Corporation.
The purchase will supplement capital for production activities and improve Vietnam Airlines' short-term solvency. This is one of two solutions approved by the National Assembly to ease the airline's difficulties.
Specifically, the State Bank refinanced credit institutions to lend additional capital to Vietnam Airlines. At the same time, the company was allowed to offer more shares to existing shareholders to increase charter capital, despite having negative equity.
The rescue package through the two solutions is worth VND12 trillion ($521.74 million), including VND4 trillion ($173.9 million) refinancing for credit institutions to lend to Vietnam Airlines at preferential interest rates, and VND8 trillion ($347.83 million) from the issuance of shares to increase capital.
Regarding the VND4 trillion loan, on July 7, Vietnam Airlines signed credit contracts with three commercial banks, namely Southeast Asia Commercial Bank, Vietnam Maritime Commercial Joint Stock Bank, and Saigon-Hanoi Bank.
Vietnam Airlines claimed that it will soon complete overall restructuring to adopt to the new situation, overcome difficulties, recover, and develop sustainably.
In the context of business difficulties, high risk of loss, and negative cash flow, Vietnam Airlines expects its total revenue in 2021 to reach VND37.4 trillion ($1.63 billion), equal to 88 per cent of the 2020 performance; the consolidated net loss amounted to VND14.5 trillion ($630.43 million), much higher than the loss of VND11.2 trillion ($487 million) in 2020. The parent company's own loss was VND13 trillion ($565.2 million).