Sacombank eyes investment in Bamboo Airways amidst airline reshuffle

September 18, 2023 | 09:25

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Sacombank, one of Bamboo Airways' primary creditors, is considering an equity investment in the airline, signalling confidence in the airline's restructuring and future growth.

Sacombank eyes investment in Bamboo Airways amidst airline reshuffle

Sacombank, the major creditor of Bamboo Airways, is considering a direct investment in the airline. The bank is in the early stages of securing the necessary regulatory clearances, as revealed at Bamboo Airways’ extraordinary meeting held on September 15.

Phan Dinh Tue, a current board member at Bamboo Airways and a former deputy CEO of Sacombank from 2012 to 2016, shared the development. He retains a seat on Sacombank's Board, further intertwining the interests of the two entities.

Emphasising Sacombank's bullish outlook on Bamboo's future growth prospects, Tue stated, "Having been a pivotal financial ally for Bamboo Airways, Sacombank sees a promising horizon on the airline's restructuring journey."

However, a potential hurdle is Sacombank's primary identity as a banking institution. Investing in Bamboo Airways would be a departure from its usual undertakings, necessitating regulatory blessings before any commitment could be made.

It is worth recalling that just last month, the Vietnamese prime minister urged relevant state management agencies to aid Bamboo Airways in navigating its challenges.

This led to the involvement of the State Bank of Vietnam, aiming to smoothen the airline's path in terms of capital and facilitate stake purchases from eligible banks. During the recent meeting at Bamboo, several pivotal decisions were made. The agenda spanned governance overhauls, tweaks to company by-laws, and the introduction of fresh corporate governance norms.

Notably, strategies for enticing strategic shareholders were also laid out.

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