Vietnam Airlines receives loan to buy Airbus A321 aircraft

Taiwan based Cathay United Bank (CUB) and other five banks have successfully arrange a 100 per cent funded loan valued at $60 million for Vietnam’s state-owned Vietnam Airlines Corporation to buy one Airbus A321 from France aircraft manufacturer Airbus.

CUB and Vietnam Airlines signed the contract with 10 year syndicated term loan on December 7 2012. This is the first syndicated and big loan arranged by Taiwanese bank for Vietnam’s state-owned enterprises, according to CUB.

This Airbus A321 aircraft is delivered in this month. Vietnam Airlines signed the purchasing agreement of 26 Airbus A321 aircrafts with the delivery time from 2011 to 2015. Vietnam Airlines’s fleet currently includes 75 aircrafts. It aims to expanse its fleet to 115 and 170 aircrafts by 2015 and 2020 respectively, according to Vietnam Airlines.

“CUB, the headquarter in Taiwan, targets to become the leading bank in Asia region with its strategic vision of expansion in Asia and the world. CUB and Indovina bank, its joint venture [with local bank of VietinBank] have 37 branches in Vietnam totally which recoding good results in Vietnam market. We hope to achieve more opportunities to cooperate with Vietnam Airlines in future,” said Lee Wei Cheng, CUB’s senior executive vice president.

Hai Long (