Capital A Berhad (Capital A) has reported the successful signing of a US$443 million revenue bond for AirAsia, marking a crucial step in its ongoing efforts to strengthen its financial position and accelerate growth in its airline business. This financing is a significant milestone in AirAsia’s journey to emerge stronger and more resilient after the challenges of the global pandemic.
Two leading private credit funds, Ares Management Corp and Indies Capital Partners, will contribute US$200 million of the funding, which will be strategically used to reactivate aircraft that were grounded during the pandemic. The remaining US$243 million, provided by aircraft lessors, will go towards refinancing existing lease liabilities, further bolstering the airline’s balance sheet.
Capital A CEO Tony Fernandes highlighted that securing the US$443 million revenue bond is a monumental achievement, reflecting investors’ strong confidence in the company’s vision and future. With the anticipated approval of their Extraordinary General Meeting documents by Bursa Malaysia, Capital A and AirAsia Group are set to emerge as two robust companies, free from PN17 status. Despite the significant challenges of the past five years, Fernandes believes the rewards for shareholders will be substantial as the company embarks on this exciting new chapter.
Bo Lingam, Group CEO of AirAsia Aviation Group said, “This revenue bond is timely in strengthening AirAsia’s financial position and liquidity. Against a backdrop of growing travel demand, we will use this funding to expand and reactivate our fleet and refinance lease liabilities for a more robust balance sheet. We plan to reactivate ten aircraft in October, with an additional 15 to follow in 2025. With ongoing customer experience initiatives and a rapidly expanding network, the future is bright for AirAsia as we accelerate into our goal of being the world’s best airline.”
