Vietnam Airlines plans to raise additional VND8 trillion ($347.8 million)

June 28, 2021 | 17:26

(0) user say

Vietnam Airlines will seek the approval of its upcoming shareholders' meeting in July to sell stocks to raise VND8 trillion ($347.83 million).

Vietnam Airlines plans to raise additional VND8 trillion ($347.8 million)

Vietnam Airlines revealed the supporting credit package was nearing completion

In case the plan is successful, Vietnam Airlines will regain its position of the Vietnamese airline with the largest charter capital with VND22.183 trillion ($96.5 million).

The national carrier will organise its annual shareholders' meeting on July 14 after multiple delays due to COVID-19 where the management board will put the capital mobilisation plan through the issuance of VND8 trillion worth of shares to current shareholders. Moreover, information related to the VND4 trillion ($173.9 million) credit package from SeaBank, Maritime Bank, and SHB will be also specified at the meeting.

A few days ago, Dang Anh Tuan, head of communications at Vietnam Airlines revealed that procedures were being completed for the VND4 trillion financial support package, saying “The airline will receive the sum in late June or early July.”

News of the life-saving credit package gave a slight rise to the airlines’ stocks on HSX, bumping it up from VND27,100 to VND27,700 ($1.18-1.20).

Vietnam Airlines came into the spotlight about a week ago with a report by the Ministry of Planning and Investment revealing that the company was on the verge of bankruptcy with the estimated losses of VND4.8 trillion ($208.7 million) over this year’s first quarter and VND10 trillion ($434.8 million) during the first half.

By Van Anh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional