Malaysia's AirAsia Group wins approval for US$120m government-guaranteed loan

[KUALA LUMPUR] Malaysia's AirAsia Group has received approval from Danajamin Nasional Berhad for a club facility of up to RM500 million (S$162.3 million), it said in a statement on Tuesday.

The loan, 80 per cent of which is guaranteed by the government, is earmarked for working capital purposes, which will support staff costs and key operating expenses such as aircraft maintenance, as the group prepares to ramp up operations, it said.

The 12-year-old Danajamin has been supporting the ambitions of viable Malaysian corporates by enabling their access to funding. It is jointly owned by Minister of Finance Incorporated and Credit Guarantee Corporation Malaysia Berhad, with each holding a half stake.

REUTERS