[ad_1]
KUALA LUMPUR: Low-cost carrier AirAsia Group Bhd has taken out a loan as part of its ongoing capital-raising plans, an executive said Thursday.
Riad Asmat, chief executive of the group’s Malaysian unit, AirAsia Bhd, said that “a loan was approved and disbursed,” in response to a Reuters inquiry about a New Straits Times report that said the airline had raised RM300 million ( US $ 72 million) loan to keep it afloat amid the coronavirus pandemic.
The report, citing sources, said the airline took the loan from Sabah Development Bank Bhd and that it would help the airline for two months to finance local operations.
“We could not reveal the details, including the lenders and the amount involved. This loan is part of AirAsia Group’s capital raising exercise, which is moving in the right direction and we are pleased with the progress, ”said Riyadh.
Sabah Development Bank could not immediately be reached for comment.
AirAsia has said that it is looking to raise up to RM2.5 billion by the end of the year, of which RM1.5 billion could be bank loans.
The group has also been seeking to have a portion of its loans guaranteed by the government.
Two weeks ago, its long-range arm AirAsia X Bhd proposed a $ 15.3 billion debt restructuring and cut equity capital to avoid liquidation.
