AsemconnectVietnam - VietJet Aviation Joint Stock Company and TienPhong Commercial Joint Stock Bank on September 18 signed a US$21 million financing agreement in HCM City providing for the purchase of two Airbus A320.

The two Airbus A320 are part of a larger order to acquire 100 aircraft, which was signed between VietJet and Airbus in 2013.

The financing agreement is structured in the form of a sale and leaseback, which is substantively equivalent to an outright purchase. 

TienPhong Commercial Joint Stock Bank is the first commercial bank in Vietnam to implement credit activities with airlines to develop fleet utilising a sale and leaseback financing arrangement, which is customary in the international aviation sector.

With this agreement in place, Airbus will deliver the next two Airbus A320 aircraft to VietJet in November and December later this year, enabling the new-age carrier to advance its expansion plan accordingly.

Source: VOV