A consortium of foreign banks, including Citi, DBS and HSBC, signed an agreement with Vietnam Airlines on Monday to provide loans totaling US$457 million for the purchase of eight Airbus planes.
The aircraft are due for delivery by the end of this year.
National carrier Vietnam Airlines had signed the contracts with France-based Airbus in 2007 and 2009 to purchase a total of 26 Airbus A321-231s for delivery during the 2011-2014 period, as part of a plan to expand its fleet to 115 and 170 aircraft by 2015 and 2020 respectively.
"This finance package will enable Vietnam Airlines to complete its fleet renewal and expansion plan, which aims to enhance our operating efficiency on all routes worldwide," Pham Ngoc Minh, President and CEO of Vietnam Airlines, said in a statement.
He added that the deal with HSBC, Citibank and DBS will pave the way for further cooperation in the future.
"We are delighted to participate in this deal with such a high profile customer as Vietnam Airlines." said Sumit Dutta, CEO of HSBC Vietnam. "Following the successful financing arrangement in 2009 for the 6 ATR 500 series, we are pleased to continue to support Vietnam Airlines in their goal to expand and become a world-class airline."
Brett Krause, Managing Director, Citi Country Officer for Vietnam, said his bank has a long-standing relationship with the Vietnamese carrier that would be further strengthened by this agreement. The bank looked forward to continued collaboration in the future, he said.
Heng Yeow Khing, Vietnam Country Manger at DBS Bank, said, "We are pleased that Vietnam Airlines has mandated the consortium to arrange the financing package to support its fleet development. As an Asian bank, DBS has a growing footprint in the three key axes of growth, namely, Southeast Asia, South Asia and Greater China."