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KUALA LUMPUR (Oct 22): Low-cost carrier AirAsia Group Bhd secured a loan as part of its ongoing capital-raising plans, an executive said Thursday.
Riad Asmat, managing director of the group’s Malaysia unit, AirAsia Bhd, said that “a loan was approved and disbursed”, in response to a Reuters query about a report New times of the strait which said the airline had obtained a 300 million ringgit 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 the capital raising exercise by AirAsia Group, which is moving in the right direction and we are satisfied with the progress,” Riyadh said.
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.
Read also:
Ministry of Finance denies approval of government financing or guarantee to AirAsia
AirAsia aims to raise RM2.5b to evaluate Japan operations
Strong haircut for creditors to bail out AirAsia X
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