Tien Phong Bank signs major credit deal with VietJet

SINGAPORE – Tien Phong Bank has become the first local bank in Vietnam to sign a financial agreement with VietJet that will supply Vietnam’s fastest growing airline with a line of credit nearing US$21 million.

 

The deal is part of a sale-leaseback agreement that will help finance VietJet’s ongoing expansion plans. Tien Phong will also supply the airline with more credit deals to finance future sale leaseback agreements.

 

Sale-leaseback agreements are attractive to both local and international banks due to the reliable nature of these deals and a guaranteed global value of the aircraft. The aviation industry is a niche market, therefore the banks must be equipped with the expertise not only in finance, but aviation. It is essential for these banks to perform global transactions widely accepted by aircraft manufacturers and finance institutions alike.

 

VietJet has previously signed finance agreements with GECAS (USA), BNP Paribas (France), Jackson Square (Japan), and other banks as part of the aircraft sale-leaseback deals.

 

VietJet recently welcomed the latest addition to its fleet. A brand new Airbus A320 Sharklet, which traveled from Airbus’ base in Toulouse, France to Tan Son Nhat International Airport in Ho Chi Minh City, Vietnam. The aircraft’s number, VNA-696, now totals the airline’s fleet to 16 Airbus jets, which operate a network of 21 domestic and international routes.