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AirAsia Aviation Group in discussions to refinance “expensive” US$ loans
March 28th 2025
AirAsia Aviation Group is in the final stages of securing up to RM1 billion (US$225 million) in debt financing from domestic banks to partly refinance its US$ denominated debt and for other corporate purposes. Read More » AirAsia Aviation Group has about RM4.3 billion in borrowings, of which around RM3.6 billion is denominated in US$. Deputy CEO of the LCC group, Farouk Kamal, said the financing deal will be in ringgit, allowing the company to reduce interest costs on “expensive” US$ borrowings and result in “immediate interest cost savings, “which go straight to the bottom line for us”, he said. At present, the group is paying interest of 11% - 12% on its US$ loans, he explained, whereas domestic bank lending could lower this [rate] to about 7% to 8%. “So that is quite a huge interest cost savings there,” he said.
