Malaysia’s Capital A has secured $443 million in funding, which will mainly go towards reactivating and refurbishing its grounded fleet.
The dual-tranche financing, disclosed 22 August, comprises $200 million from two private credit funds Ares Management and Indies Capital Partners, as well as $243 million from lessors, which the AirAsia group will use to refinance its existing lease liabilities.
Says Bo Lingam, AirAsia Aviation chief: “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.
The low-cost airline group, which has units in Malaysia, Indonesia, Thailand, Cambodia and the Philippines, is hoping to reactivate its full fleet of over 200 Airbus narrowbodies by the end of the year.
Meanwhile, Capital A is in the process of divesting its airline business to associate unit AirAsia X, as part of a move to streamline its operations.
Capital A chief Tony Fernandes says the latest fundraising is a “monumental development”, adding that both Capital A and AirAsia are “approaching the finish line of our post-pandemic recovery journey”.
He adds: “Closing this deal marks a critical turning point for AirAsia. We are not merely recovering from the pandemic’s impact—we are emerging stronger than ever.”
