Vietjet and Carlyle Group, a US-based financial firm, have signed an aircraft financing agreement worth US$550 million during the official visit of the US President Joe Biden to Vietnam.

The agreement will see Carlyle Aviation Partners, a subsidiary of the Carlyle Group, finance the 200-aircraft order announced earlier between Vietjet and Boeing. The order is considered one of the largest commercial contracts to date and one that contributes greatly to the trade balance between Vietnam and the United States.

This order, which is worth over US$25 billion, will be implemented in five years with the first delivery of 12 aircraft scheduled for 2024. The first batch of 737 Max will be delivered to Bangkok-based affiliate Thai Vietjet.

“Carlyle Aviation Partners has been a long-term strategic partner of Vietjet,” said Robert Korn -Co-Founder & President of Carlyle Aviation Partners. “We are pleased to accompany and witness Vietjet’s aggressive growth over the last decade. The airline has offered passengers reasonable fares and convenient travel options; thus contributing positively to the aviation and tourism development; also fostering investment between Vietnam and the international community.”

Founded in 2002 with headquarters in Miami, Carlyle Aviation Partners is in the business of global aircraft finance and leasing. It currently manages a fleet of 396 aircraft in 59 countries and is owned by Carlyle Group, which manages US$385 billion in total assets.