Vietjet raises USD 28 million in bond sale

Vietjet raises USD 28 million in bond sale

Vietjet Aviation Joint Stock Company has raised a total of VND 650 billion (USD 28 million) from selling 6.5 million bonds which is a result from its year-end bond issue in early December last year. The bond sale is a part of Vietjet’s mid-and-long-term bond plan to seek capital from the investors. The newly acquired cash will fund the airline’s development plan in 2021.

According to Fitch Ratings, Vietnam’s aviation industry will recover faster than other countries’ in Southeast Asia due to its effective disease control. The ongoing 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.

Amid the raging global pandemic throughout 2020, the airline has proved itself to be one of a few airlines to successfully utilize the advantages of a low-cost carrier through several determined but flexible business solutions. They were behind its new sources of revenue and better optimized operations, helping the airline to stay afloat in the pandemic.

The post Vietjet raises USD 28 million in bond sale appeared first on Travel Daily.

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