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KUALA LUMPUR: Budget Airline AirAsia Group Bhd
it has taken out a loan as part of its ongoing capital raising plans, an executive said.
Riad Asmat, managing director of the group’s Malaysia unit, AirAsia Bhd, said that “a loan was approved and disbursed.”
He was responding to an inquiry about a report that the airline had obtained a loan of RM300 thousand to keep it afloat after the ravages caused by the Covid-19 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 will not be able to release 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 seeks 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, his AirAsia X Bhd long-travel arm proposed a restructuring of the debt of US $ 15.3 billion and a cut of equity capital to avoid liquidation. – Reuters
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