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AirAsia Group to tap shareholders for US$244 million in rights issue
July 13th 2021
AirAsia Group said in a regulatory filing to the Bursa Malaysia it planned to raise up to one billion ringgit (US$244 million) from existing shareholders in a rights issue of seven-year redeemable convertible unsecured Islamic debt securities. Read More » The funds will be used for fuel hedging settlements, aircraft lease and maintenance payments, investment in AirAsia's digital businesses and for general working capital, the LCC group said. "The proposed rights issue will enable the company to raise funds to provide the group with sufficient capital to ride out the current challenging environment and meet the group’s funding requirements," AirAsia Group said. The proposed rights issue would "not fully address" its financial concerns, as the amount to be raised was insufficient to meet long-term cash flow requirements, the LCC group said. It was an "interim measure" to address near-term cash flow requirements, with the company continuing to explore "other available options and/or corporate proposals" to improve its financial performance.
