AIRASIA Group Bhd has approved and disbursed a RM300 mil loan from Sabah Development Bank Berhad to its units as part of the group’s fundraising efforts, the budget airline said in a Bursa Malaysia filing today.
The airline said the loan is not backed by a government guarantee, which the group has been seeking for a portion of the loans it hopes to secure.
AirAsia has been looking to raise as much as RM2.5 bil by the end of the year, RM1.5 bil of which could be in bank loans.
The low-cost carrier said the loan is to fund specific development projects as agreed by the airline and the bank, including RM170 mil to establish and operate a digital food supply chain and cold chain facilities in Sabah.
The rest will part-finance a project to turn the capital city airport into an international hub for AirAsia’s operations, enhance e-commerce platforms and marketability of Sabah products and promote tourism destinations on AirAsia’s platform.
“The main purpose of the loan is to enhance logistics in Sabah by increasing its supply chain and connectivity, creating over 100,000 new jobs in the process,” it said. – Oct 23, 2020, Reuters
