Citi and Development Bank of Japan team up to finance Vietnam Airlines’ fleet expansion.

An Export Credit Agency facility of $110 million has been arranged and financed by Citi and Development Bank of Japan (DBJ) with the support of European Export Credit Agencies and fronted by EULER HERMES, the German export credit agency. The two aircraft were delivered in June and August this year.

“This finance package will enable Vietnam Airlines to accomplish its fleet expansion plan which aims to enhance our operating efficiency on both domestic and international routes,” said Pham Ngoc Minh, president and chief executive officer of Vietnam Airlines.

“We strongly believe that this credit facility agreement between Vietnam Airlines and Citibank will foster our long-lasting partnership in the future and enable Vietnam Airlines to complete its realisation of the development strategy, becoming one of the Asia’s carriers of choice by 2020,” Minh added.

Vietnam Airlines has been successful in sustaining high load factor and keeping it in a rising trend over the years. Along the line with Vietnam Airlines’ development process, Citi has had a long-standing and multi-faceted relationship with Vietnam Airlines, including being the sole arranger for its first US Exim-backed financing for Boeing aircrafts in 2003.

“For the third time with Vietnam Airlines, Citi is very proud to be the Joint Co- Arranger for the ECA Facility of $110 million. This critical deal will surely help the company expand and increase the capacity of Vietnam Airlines fleet, in an effort to better meet the demand of passenger and cargo transport,” said Brett Krause, managing director and Vietnam Citi country officer.

For DBJ, this transaction is the first time this bank works together with Citi. “DBJ believes that this transaction will lead to long-term partnership with Citi as well as Vietnam Airlines,” Masao Masuda, DBJ’s acting head of global aviation team, said.