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Banking & Finance

MB finances Vietjet aircraft purchase

Released at: 11:47, 05/06/2016

MB finances Vietjet aircraft purchase

Photo: Vietjet Air

Bank to provide financial assistance to Vietjet in buying an Airbus A320.

by Hong Nhung

Military Bank (MB) and Vietjet Air signed a long-term credit contract on June 2 worth $35.5 million for the purchase of a new Airbus A320 aircraft.

MB becomes the first domestic bank to provide long-term credit for Vietjet’s fleet expansion. The aircraft is expected for delivery shortly and will bear the identification number VJ-A675. The credit falls within the framework of a Cooperation Principle Contract signed between the two in December 2015.

“We are honored to sign the agreement with MB, which is the first domestic bank to finance Vietjet’s aircraft purchases,” said Ms. Nguyen Thanh Ha, Chairwoman of Vietjet Air. “This is a good sign for the banking and finance market in Vietnam, with banks having sufficient budget and resources to engage in credit activities.”

“MB defines its role a being a companion of and supporting Vietnamese enterprises to grow and enhance their competitive advantages,” said Dr. Le Cong, General Director of MB. “Through cooperation with Vietjet in purchasing a modern aircraft, we believe we will contribute to promoting the development of Vietnam’s aviation sector, enhancing choice in service experience.”

According to the agreement signed in December 2015, MB and Vietjet will strengthen cooperation in various fields, such as a short-term credit line of around $23 million in additional working capital and prepayment to purchase aircraft, long-term credit of $50 million to purchase new aircraft from Airbus during the 2015-2020 period, banking products and services, and coordinating technological solutions in ticket sales by integrating with the MB.Plus service.

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