Malaysian company AirAsia secures $ 72 million loan from Sabah Development Bank
KUALA LUMPUR, October 23 (Reuters) – Malaysian AirAsia Group Bhd has approved and disbursed a 300 million ringgit ($ 72 million) loan from Sabah Development Bank Berhad to its units as part of fundraising efforts of the group, the low-cost airline said in a stock exchange filing on Friday.
The airline said the loan was not backed by a government guarantee, which the group is seeking for part of the loans it hopes to secure.
AirAsia is looking to raise up to 2.5 billion ringgit by the end of the year, of which 1.5 billion ringgit could be in the form of bank loans.
AirAsia said the loan was intended to finance specific development projects agreed to by the airline and the bank, including RMB 170 million to establish and operate a digital food supply chain and cold chain facilities in the state. from Sabah.
The remainder will partly fund a project to transform the capital’s airport into an international hub for AirAsia operations, improve e-commerce platforms and the marketing of Sabah products, and promote tourist destinations on the AirAsia platform.
“The main objective of the loan is to improve logistics in Sabah by increasing its supply chain and connectivity, thereby creating more than 100,000 new jobs,” he said.
$ 1 = 41,550 ringgits Report by Liz Lee; Editing by Mark Potter