Company News

AirAsia sets up $1-billion funding program to shore up finances

A girl pushes the door of an AirAisia ticketing office at Soekarno-Hatta Airport in Jakarta, July 8, 2015. REUTERS/Beawiharta

SINGAPORE (Reuters) - Asia's largest budget airline, AirAsia Bhd AIRA.KL, has set up a $1-billion financing plan through a multicurrency medium-term note program, months after it faced calls to shore up its financing in tough operating conditions.

In a statement to Bursa Malaysia on Wednesday, AirAsia said the funds would be used for purposes ranging from working capital to debt refinancing and financing the equity portion of its aircraft.

IFR reported the news in November.

The funding move comes after AirAsia said in November that major shareholders were evaluating “all strategic options” following a Reuters report that the airline’s chief executive was seeking investors to take it private.

Barclays BARC.L is the sole arranger for the funding program, for which it is also the joint dealer with CIMB CIMB.KL and RHB Investment Bank.

AirAsia has mandated the banks to arrange meetings with investors in Singapore, Hong Kong and London starting from Thursday.

Reporting by Anshuman Daga; Editing by Clarence Fernandez