Capital A has announced that AirAsia Berhad a wholly-owned subsidiary of Capital A had accepted a five-year term loan facility of up to USD150.0 million (RM700 million) offered by a financial institution.
In a filing on Bursa, the parent company without revealing which financial institution whether local or international said the term loan is for working capital and funding the aircraft and engines maintenance cost.
Term Loan is secured by, inter-alia, a corporate guarantee from Capital A, which shall remain throughout the term of the Term Loan
Capital A said the Term Loan is not subject to the approval of the shareholders.
According to the company, Bank Negara Malaysia on 19 September 2023 approved AAB’s application for the Term Loan under its Foreign Exchange Policy.
