UPDATE 1-Malaysia’s AirAsia Group Gets Approval for $ 120 Million Government Guaranteed Loan
(Add more details, background)
KUALA LUMPUR, Oct. 5 (Reuters) – Malaysian group AirAsia has received approval from Danajamin Nasional Berhad for a club worth up to 500 million ringgit ($ 120 million), he said in a statement on Tuesday.
The loan, 80% of which is government guaranteed, is intended for working capital purposes, which will support staff costs and major operating expenses such as aircraft maintenance as the group prepares to scale up its operations. operations, he said.
The loan, disbursed as part of a government COVID-19 economic stimulus package, was approved by the airline’s lenders as part of club deal term financing, he said.
Danajamin Nasional, the country’s only financial guarantee insurer, is half-owned by the finance ministry.
Malaysia plans to allow domestic interstate travel and international travel for its citizens when 90% of its adult population is fully immunized. The rate stood at 88% on Monday.
AirAsia has sought up to 2.5 billion ringgit to overcome the pandemic-induced global travel crisis, initially with the goal of securing funds by the end of last year.
The group plans to raise up to 1 billion ringgit The group plans to raise up to 1 billion ringgit through a capital increase by the end of this year through a capital increase by the end of this year.
$ 1 = 4.1780 ringgits Report from Liz Lee; edited by Jason Neely and Louise Heavens