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TPBank, Vietjet agree US$400m credit deal

Update: January, 30/2015 - 08:34

The Tien Phong Bank and Vietjet signed a credit agreement yesterday in Ha Noi. — Photo Vnexpress

HA NOI (VNS) — The Tien Phong Bank and Vietjet signed a credit agreement yesterday in Ha Noi for buying an airbus to serve Viet Nam's fastest growing airlines for the 2015 to 2020 period.

The financial agreement follows the success of an earlier contract between the two to purchase two Airbus A320s, which were part of a larger order to acquire 100 aircraft and was signed between VietJet and Airbus in 2013.

The aviation industry has been a niche market for domestic credit institutions and is mostly controlled by foreign institutions. The participation of local banks in the industry reflects their improved financial ability.

Speaking at the signing ceremony, Nguyen Hung, TPBank's general director, said the bank and Vietjet will tap each other's strengths for further development.

‘This can also help Vietjet develop its aircraft to meet growing demand from the aviation transport market and provide customers with better access to its services", Hung added.

Luu Duc Khanh, Vietjet's managing director, said TPBank has been a dynamic and stable institution that has reported impressive operational results. The bank has been a pioneer in joining new and potential sectors, such as aviation and high technology.

Last year, the bank had achieved breakthroughs as its total assets surpassed VND50 trillion ($2.3 billion), and it reported a credit growth rate of over 50 per cent. Its profit was 22 per cent higher than the set target, while its debt rate was only 1 per cent.

Vietjet has seen strong development and has brought new development trends to Viet Nam and the regional aviation market.

It operates 20 Airbus A320s and will add nine to ten aircrafts each year going forward. It has 150 flights that fly on 28 domestic and international routes.

By the end of this month, it will also welcome its 10 millionth passenger. — VNS

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