KUALA LUMPUR: AirAsia Group Bhd
is predicted to finish its renounceable rights issue to its present shareholders upon the itemizing of the redeemable convertible unsecured Islamic debt securities (RCUIDS) and warrants on Dec 31.
The train raised RM 974.5mil and offered a powerful injection to help the general group fundraising technique, AirAsia stated in a press release.
“After the most challenging two years in commercial aviation history, the end is finally within reach. We have survived the pandemic. We have restructured, relaunched and are now in a stronger position to recover faster,” group CEO Tan Sri Tony Fernandes stated.
“We have used the downtime in flying to review every aspect of our airline operations with a strict focus on cost containment and implementing an optimal network and fleet strategy to put in place a solid platform to return to the skies leaner and stronger than ever in all key markets,” he stated, including that the group had remodeled right into a digital journey and life-style companies group which isn’t solely reliant on airfares alone.
Fernandes famous that its tremendous app achieved unicorn standing in beneath two years after it was valued at over RM1bil by Credit Suisse whereas its fintech enterprise BigPay raised as much as US$100mil in financing from SK Group. BigPay is now specializing in securing a financial institution lending licence to develop its low fee choices.
“The Rights Issue announced today is a key component of our overall fundraising strategy supporting a strong rebound in air travel across Asean in 2022.
“We are gradually resuming flights in all of our key markets and look forward to returning to pre-Covid levels on many of our popular routes in the new year alongside strong vaccination rates, better testing procedures and education in all of our markets.
“It also shows continued strong investor confidence in our overall recovery strategy including the digital transformation which has already received overwhelming support to date through various fundraising initiatives,” he stated.
“Furthermore, we have also secured approval from Danajamin Nasional Bhd for an 80% guaranteed loan of up to RM500mil. All of which signal strong support for our transformation strategy to become more than just an airline in the digital era.
“Importantly, with today’s announcement, our fundraising strategy remains firmly on track. We have now achieved over RM 2.5bil of fundraising, providing strong liquidity to ramp up operations through next year when we expect to be sustainable and driving shareholder value once again,” Fernandes stated.
