Vietnam-based budget airline VietJet Air is to finance the purchase of five Airbus planes via a credit line of nearly $60 million arranged by French-based lender BNP Paribas SA, the carrier said on Wednesday.
The two-year loan will help finance VietJet's purchase of Airbus planes under a $9 billion order placed in 2014, as the carrier seeks to tap into a booming southeast Asian market and eyes new ventures with airlines in north Asian countries.
VietJet, Vietnam's first privately owned carrier, has a fleet of 23 planes and will receive between six and 10 jets each year of the 100 ordered from Airbus. It is researching routes to Europe, the statement said.
VietJet plans to raise funds through a stock market flotation this year, while not ruling out bond issues and bank loans. It said in January it had won a $400 million credit line with domestic lender TPBank, to run through 2020.
BNP Paribas was the financial adviser for VietJet in renting its first seven jets during 2014-2015, according to the statement.