Sacombank assures no loss on $141M loan to Bamboo Airways
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Sacombank has assured that it will not lose the VND3.58 trillion (US$141 million) it has lent to Bamboo Airways, citing that the loans are secured by high-value assets.
The loans used to be secured by its shares and assets of property developer FLC, its former owner, Sacombank CEO Nguyen Duc Thach Diem said at its annual general meeting Friday.
But when new owners took over the airline, the bank persuaded them to pledge high-value properties in HCMC instead, and the loans are now classified as “qualified debt,” meaning they have the lowest risk of turning into bad debts, she said.
“It is certain that Sacombank will not lose the money it has lent to Bamboo Airways,” she said.
Sacombank decided to invest in the airline, which has been going through major restructuring after being sold by FLC.
In February the bank’s former deputy CEO, Phan Dinh Tue, took over as chairman of the airline.
Questions & Answers
Q.How did Sacombank re-secure its loan to Bamboo Airways after the change of ownership?
How did Sacombank re-secure its loan to Bamboo Airways after the change of ownership?
When new owners acquired Bamboo Airways, Sacombank persuaded them to pledge high-value properties in Ho Chi Minh City. This replaced the original security, which was the airline's shares and assets from former owner FLC.
Q.What is the current classification of Sacombank's loan to Bamboo Airways?
What is the current classification of Sacombank's loan to Bamboo Airways?
The loan is now classified as 'qualified debt' by Sacombank. This classification indicates the lowest risk of the debt turning bad, according to CEO Nguyen Duc Thach Diem.
Q.Who is the new chairman of Bamboo Airways?
Who is the new chairman of Bamboo Airways?
Phan Dinh Tue, who was formerly Sacombank's deputy CEO, took over as chairman of Bamboo Airways in February. This move occurred as the airline undergoes significant restructuring.