AirAsia secures US$150m term loan

CAPITAL A’s wholly-owned subsidiary, AirAsia Bhd, has successfully secured a five-year term loan facility of up to US$150 million (RM705 million) from a financial institution.

This term loan is earmarked to cover the costs associated with aircraft and engine maintenance, as well as fulfilling the company’s working capital requirements.

Notably, the term loan is backed by a corporate guarantee from Capital A, which will remain in effect throughout the entire term of the loan.

Bank Negara Malaysia granted approval for AirAsia Bhd’s application for the term loan under its Foreign Exchange Policy on September 19.

Capital A’s shares concluded the day at 96 sen, reflecting a 1.5% decrease, with a total market capitalisation of RM4.05 billion. – TMR / pic MUHD AMIN NAHARUL