HANOI: Vietnam Airlines JSC has approved a plan to raise VN？8 trillion (US$346.2mil or RM1.5bil) through share issuance.

       The issuance rate is 56.4%.

       These shares are common stocks and shareholders can transfer them freely. Accordingly, existing shareholders can transfer their stock purchase rights to local individual or institutional investors.

       The right can only be transferred once during the given period. And subsidiaries are forbidden to buy shares or invest in the holding company.

       Issuance procedures are expected to be completed in the second half of 2021, said Vietnam Airlines chief accountant Tran Thanh Hien.

       With the current progress, funds raised from the issuance will arrive in the third quarter to maintain business activities.

       The national flag carrier also prioritises disbursing the refinancing loans worth VN？4 trillion (RM733mil) to pay for part of its outstanding debts, due debts as well as current liabilities and long-term liabilities.

       General-director Le Hong Ha said that to achieve this target, the carrier will focus on operating flights safely as well as preventing the pandemic.

       At the same time, it will carry out inclusive restructuring and digital transformation, he said.

       The company also seeks support from its counterparts to reduce prices, delay payment and cut costs to minimise losses in business results.

       Representatives from Vietnam Airlines said the carrier is reviewing its external investments, including divestment in some portfolios, to have more capital for its own businesses.

       This year, the carrier plans to sell six old ATR-72 aircraft and replace them with jet planes to strengthen competitiveness in niche markets. — Viet Nam News/ANN