AirAsia To Complete RM974.5 Million Rights Issue

AirAsia Group Bhd (AAGB) today announces it will complete its renounceable rights issue to its existing shareholders upon listing of the RCUIDS and Warrants on Friday, December 31, successfully raising RM 974.5 million and providing a strong injection to support the overall Group fundraising strategy.

AirAsia Group CEO, Tony Fernandes said, “After the most challenging two years in commercial aviation history, the end is finally within reach. We have survived the pandemic. We have restructured, relaunched, and are now in a stronger position to recover faster. 

“We have used the downtime in flying to review every aspect of our airline operations with a strict focus on cost containment and implementing an optimal network and fleet strategy to put in place a solid platform to return to the skies leaner and stronger than ever in all key markets. 

The Rights Issue entailed the issuance of 7-year Redeemable Convertible Unsecured Islamic Debt Securities (“RCUIDS”) with a nominal value of RM0.75 each, plus free detachable warrants, on the basis of 2 RCUIDS with 1 warrant for every 6 AAGB shares held.

As a key component of AAGB’s fund-raising initiatives, the Rights Issue will enable AAGB to support various segments of the Group, including but not limited to, working capital and other operational costs incurred due to the outbreak of the global Covid-19 pandemic and costs required to ramp-up operations to be prepared for the rebound of international travel, balanced with funding growth of the various airasia digital business units.

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