The credit agreements reinforce the growing relationship between Vietjet and regional banks to diversify capital sources.
|Vietjet signed the international credit loans with a prestigious group of regional and international banks |
On November 15, Vietjet organised the signing ceremony for the unsecured, international medium and long-term syndicated loan at one of the best interest rates in the market today. The participating international banks included Woori Bank, ICBC, and KEB Hana Bank, of which Woori Bank is the Mandated Lead Arranger.
Additionally, Vietjet entered into a credit financing agreement with Woori Bank for a total of $140 million. The programme is going to arrange an additional amount of $100 million with another international bank very soon.
|Vietjet will use these foreign currency sources to expand its fleet |
With Vietjet’s high growth potential, the financing agreements helped increase medium- and long-term foreign currency sources to meet the needs of expanding its modern fleet in line with the company’s long-term international growth strategy.
Vietjet has been leading in the domestic market and continues to strengthen its international market presence. Over the past five years, Vietjet’s revenue and profit have grown at an average of 50 per cent. AirFinance Journal gave Vietjet a BBB rating in 2019 and ranked it in the world’s top 50 airlines in term of financial health for the second consecutive year.
The EBITDAR margin was scored at A by AirFinance, and Vietjet ranked in the top 3 among the airlines over the world in the category. The current liquidity ratio is 1.3. The debt to equity ratio was 0.6, of which equity was $640 million and total assets $2 billion. On November 14, Vietjet was awarded the Asia-Pacific LCC Airline of the Year title by CAPA.
With these international credit agreements, the parties look forward to greater co-operation opportunities in Vietjet’s financing resources in the future.