AirAsia offers new capital raising plan



KUALA LUMPUR: AirAsia Group Bhd announced a new RM1bil fundraising plan, as the low-cost carrier aims to resume at least 35% of its flights from pre-Covid-19 capacity by the end of the year.

AirAsia, in a filing filed with Bursa Malaysia today, has proposed a waiver of up to RM 1.02 billion in convertible unsecured Islamic debt securities payable at 7 years (RCUIDS).

The RCUIDS will be issued on the basis of two RCUIDS with a free tear-off voucher for six AiAsia ordinary shares.

Around RM380 million has been set aside to pay for the group’s fuel coverage settlement and aircraft rentals, while RM122 million has been allocated to its digital business.

A total of RM508mil has been earmarked for working capital purposes.

“The proposed rights issue will allow the Company to raise funds to provide the Group with sufficient funding to weather the current difficult environment and meet the Group’s funding requirements,” said AirAsia.

The group has planned to increase between RM615.9mil and RM1.02bil below the minimum subscription level and the full subscription level respectively.

The fundraising exercise, AirAsia said, “will also improve the group’s financial position with an increase in net assets and an improvement in the group’s indebtedness.”

“Overall, in accordance with the planned vaccination schedule and the gradual increase in demand for air travel, the Group will continue to exercise its active capacity management strategy and aims to operate around 35 to 45% of its pre-Covid 2019 activity. 19 capacities by the end of 2021, with the corresponding ramp-up of its program of flights to normal thereafter, “he said.

AirAsia said it would continue to assess the potential to increase the number of flights and add destinations for its customers in the coming months, subject to government health measures.


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