SINGAPORE, 14 January 2021: Vietjet Aviation Joint Stock Company has raised VND650 billion (approximately USD28 million) following its year-end bond issue in early December last year.
The bond sale, which was a part of Vietjet’s mid-and-long-term bond plan, was the second time Vietjet listed its bonds to seek new capital. The newly acquired cash will fund the airline’s development plan in 2021.
Vietjet previously secured VND650 billion from selling 6.5 million bonds in its first issuance.
According to Fitch Ratings, Vietnam’s aviation industry will recover faster than other countries’ in Southeast Asia due to its effective disease control. The on-going trials of vaccines in many countries, including Vietnam, are a positive sign for the aviation’s recovery.
VnDirect Securities Company also forecast an optimistic outlook for Vietnam’s aviation in its investment strategy report for 2021, citing several investment projects in the coming time which will generate a rapid and stable development momentum in the future.
Meanwhile, low-cost carriers are predicted to bounce back more quickly when the pandemic is curbed thanks to their business model, effective operations and low debt ratio, according to Seahawk Investments.