VietJet plans to sell 15% stake, raise $300m via international bond sale

FILE PHOTO: Vietjet aircraft prepare to take off at Tan Son Nhat airport in Ho Chi Minh city, Vietnam, August 19, 2018. REUTERS/Kham

Vietnam’s VietJet Aviation said on Tuesday it plans to sell a stake of up to 15% via a private placement and raise $300 million through an international bond sale to boost the budget airline’s financial capacity when travel markets revive.

The company’s shareholders had approved the plan at a meeting earlier on Tuesday, VietJet said in a statement.

The fund raising is part of its efforts to “ensure that VietJet has sufficient resources for safe and effective development when the market recovers,” the company said.

It said shareholders also approved a plan to sell 10 million new shares to its staff, without giving a time frame.

VietJet, which has a market capitalisation of $2.82 billion, said it is targeting a 20% rise in revenue this year to 21.9 trillion dong ($951.35 million).

The company reported a net profit of 68 billion dong last year.

VietJet President and CEO Nguyen Thi Phuong Thao said in an interview earlier this year the airline planned to expand its investment in new aircraft and technical facilities this year.

Reuters  

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.