A Bamboo Airways aeroplane. It plans to increase charter capital through share issuance from VNĐ18.5 trillion to VNĐ28.5 trillion. Photo courtesy of Bamboo Airways

HÀ NỘI —Bamboo Airways has revealed plans to raise nearly VNĐ10 trillion (US$424.1 million) by issuing 996.2 million shares.

The move, to be announced at an Extraordinary General Meeting of Shareholders held on April 10th, would raise the airline's charter capital from the current VNĐ18.5 trillion to VNĐ28.5 trillion.

The proposed share issuance is slated to take place this year, and there will be no restrictions on the transfer of the newly issued shares.

According to Bamboo Airways’ Nguyễn Ngọc Trọng, the share issuance is to continue their restructuring of organisation and debt and to have more capital for operation and development.

Nguyễn Mạnh Quân, the airline’s General Director, said they had found a new investor to replace the old shareholders, former Chairman Trịnh Văn Quyết and other related shareholders.

Bamboo Airways is in the negotiation phase with a new investor. However, Quân did not reveal any further details.

It carries out the procedures for transferring shares from old shareholders to new investors.

In addition to paying the share purchase price, the new investor has also agreed to be responsible for the payment of principal and interest on previous loans used by the old shareholders.

At the same time, the new investor also supported former Chairman Trịnh Văn Quyết with a separate amount of money that will be paid into the trading account of Quyết blocked by the Investigation Police Agency.

Bamboo Airways has called for support from several large investors to help the company overcome the current crisis.

For example, Him Lam Joint Stock Company has lent Bamboo Airways VNĐ8 trillion. 

On March 17, FLC’s Board of Directors approved using its 155 million shares at Bamboo Airways to pay for loans at OCB’s Thăng Long Branch.

Established on May 31, 2017, Bamboo Airways had an initial charter capital of VNĐ700 billion, 100 per cent owned by FLC Group.

After that, the airline increased its charter capital to VNĐ2.2 trillion, VNĐ7 trillion and VNĐ10.5 trillion and finally, VNĐ18.5 trillion in September 2021. FLC also gradually reduced its ownership to 21.7 per cent. VNS