AirAsia boss says RM1b in loans pending regulator approval

[KUALA LUMPUR] AirAsia Group expects to secure RM1 billion (S$324.7 million) in loans from three Malaysian banks, pending approval from local regulators, group chief executive Tony Fernandes said in a report by The Edge Malaysia.

The budget airline said last week it had raised US$82 million through private share placements, in a bid to ensure liquidity in 2021.

Mr Fernandes said the airline expected to have a "clear line of sight" by June on how much funding they will be able to raise, which he estimated to be between RM2 billion and RM2.5 billion.

"What I'm confirming by the way is that banks have approved part of the RM1 billion but Danajamin hasn't approved," Mr Fernandes was quoted as saying in an interview with The Edge, referring to the government's financial guarantee insurer.

He did not identify the three local banks involved.

Mr Fernandes said they are also considering a loan offer from the Thai government via its Exim Bank, besides raising up to RM1 billion through rights issues.

"In the worst case scenario, we have enough cash to last us until 2023," Mr Fernandes said.

REUTERS

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