Vietjet and Novus Aviation Capital to collaborate on aircraft financing and SAF initiatives
4th December 2023
Hainan Airways is about to receive funds of $1.6 bn from Fagda Group Industrial to help the airline in financial recovery. The securities regulator in China has approved of the private placement plan of Hainan Airlines.
Fangda Group Industrial is a Chinese conglomerate that purchased a controlling stake in Hainan Airlines Group (HNA) in 2021.
Hainan Airlines will issue nearly 10 billion shares to Hainan province-based Hanwei Investment, to supplement liquidity while strengthening its main business.
HNA Group transferred control of its flight operators, including HNA Airlines Group and Hainan Airlines, to Fangda in December, 2021. Back then Fagda invested CNY 38 bn in HNA's main business and further provided CNY3 $429.6 million for risk mitigation.
After the newest transaction, Hanwei will become the largest shareholder of Hainan Airlines as its shareholding will rise to 24.4%. Hainan Fangda Aviation Development will be the second-largest shareholder with a stake of 9.7%, down from the previous 12.6%.