Wednesday, August 21 2019

VietNamNews

Vietravel explores $30 million bond issuance for aviation projects

Update: July, 31/2019 - 08:48

 

Staff at a Vietravel branch in Hà Nội. Nguyễn Quốc Kỳ, General Director of Vietravel, revealed the plan to establish Vietravel Airlines for the first time at a conference in early April. — Photo vietravel.com

HÀ NỘI — Local tour operator Vietravel is collecting shareholder opinions on its plan to issue non-convertible bonds worth VNĐ700 billion (US$30 million) to provide supplementary capital for the establishment of Vietravel Airlines.

The bonds have a term of two years with a maximum interest rate of 11 per cent per year.

The firm also asked shareholders to cancel the plan to issue 80,000 non-convertible bonds with a face value of VNĐ1 million, approved at the annual general meeting in April. Under this plan, the bonds would have a term of 30 months and were expected to be released in the third quarter of this year.

Nguyễn Quốc Kỳ, General Director of Vietravel, revealed the plan to establish Vietravel Airlines for the first time at a conference in early April.

In mid-February, the company established Việt Nam Travel Aviation Co Ltd with initial charter capital of VNĐ300 billion, based in the central province of Thừa Thiên Huế. Charter capital was later lifted to VNĐ700 billion.

According to the website of the Thừa Thiên – Huế People's Committee, on June 11, Vietravel Airlines submitted an investment plan for the project to the provincial authorities.

Vietravel Airlines has a total investment of about VNĐ1 trillion and will provide domestic and international air transport services. It is expected that after beginning official operations early next year, the airline will receive 20 aircraft and carry 5 million passengers annually.

Vice Chairman of Thừa Thiên Huế People's Committee Nguyễn Văn Phương has committed to support Vietravel and instructed related agencies to create favourable administrative conditions to help the company stay on schedule. — VNS

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