Vietnam Airlines to raise $350m equity from shareholders

Vietnam Airlines plans to issue D8t ($350m) worth of ordinary shares for sale to existing shareholders to supplement working capital and pay down debt. It expects to complete the issuance within the first six months of 2021, after obtaining regulatory approval, according to a 30 December filing to the Ho Chi Minh City Stock Exchange that details a 29 December meeting of shareholders. The airline says the issuance will increase its charter capital. In a Vietnamese company, charter capital is the amount that shareholders contribute within a prescribed time limit and can be used as working capital, according to management consultancy Dezan Shira & Associates. Vietnam Airlines reported charter capital of D14.2t in its 2019 annual report. The funds raised from selling the new shares will be used for working capital requirements, as well as principal and interest payments on debt.<br/>