AirAsia sets up US$1b funding programme to shore up finances

[SINGAPORE] Asia's largest budget airline, AirAsia Bhd, has set up a US$1-billion financing plan through a multicurrency medium-term note programme, months after it faced calls to shore up its financing in tough operating conditions.

In a statement to Bursa Malaysia on Wednesday, AirAsia said the funds would be used for purposes ranging from working capital to debt refinancing and financing the equity portion of its aircraft.

The funding move comes after AirAsia said in November that major shareholders were evaluating "all strategic options"following a Reuters report that the airline's chief executive was seeking investors to take it private.

Barclays is the sole arranger for the funding programme, for which it is also the joint dealer with CIMB and RHB Investment Bank.

AirAsia has mandated the banks to arrange meetings with investors in Singapore, Hong Kong and London starting from Thursday.

REUTERS