AirAsia confirms loan to keep plans going

Riad Asmat, (pic) CEO of the group’s Malaysian unit, AirAsia Bhd, said “a loan has been approved and disbursed”.

KUALA LUMPUR: Budget carrier AirAsia Group Bhd has secured a loan as part of its ongoing capital-raising plans, an executive said.

Riad Asmat, CEO of the group’s Malaysian unit, AirAsia Bhd, said “a loan has been approved and disbursed”.

He was responding to a query about a report that the airline had secured a RM300mil loan to keep it afloat after the ravage wreaked by the Covid-19 pandemic.

The report, citing sources, said the airline took the loan from Sabah Development Bank Bhd and that it would tide the airline over for two months, financing local operations.

“We will not be able to disclose the specifics including the lender(s) and amount involved.

This loan is part of the capital raising exercise by AirAsia Group, which is moving in the right direction and we are pleased with the progress, ” Riad said.

Sabah Development Bank could not immediately be reached for comment.

AirAsia has said it was looking to raise as much as RM2.5bil by year-end, RM1.5bil of which could be in bank loans.

The group has also been seeking a portion of its loans to be guaranteed by the government. Two weeks ago, its long haul arm AirAsia X Bhd proposed a US$15.3bil debt restructuring and cutting share capital to avoid liquidation. – Reuters

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