Thursday, August 22, 2024 Capital A Berhad (“Capital A”) is delighted to share the successful completion of a $443 million revenue bond for AirAsia, marking a pivotal advancement in fortifying its financial base and propelling the growth of its aviation division. This strategic financial move is key to AirAsia’s recovery and resilience in the aftermath of global pandemic challenges. The financing includes a $200 million contribution from two prominent private credit funds, Ares Management Corp and Indies Capital Partners, aimed at reactivating aircraft that were sidelined during the pandemic.
An additional $243 million portion, raised from leading aircraft lessors, will be used to refinance existing lease obligations, thereby enhancing its financial stability. Capital A CEO Tony Fernandes said, “Securing this USD 443 million revenue bond is a monumental development for us. It reflects the immense confidence that investors have in our vision and future.
We’re approaching the finish line of our post-pandemic recovery journey. The Extraordinary General Meeting documents have been submitted to Bursa Malaysia, awaiting review and approval, after which we will see the emergence of two incredible companies—Capital A and AirAsia Group—both free from PN17 status. The last five years have been our most challenging, but the rewards for our shareholders will be substantial as we embark on this exciting new chapter.
” Bo Lingam, Group CEO of AirAsia Aviation Group said, “This revenue bond is timely in strengthening AirAsia’s financial position and liquidity. Against a backdrop of growing travel demand, we will use this funding to expand and reactivate our fleet and refinance lease liabilities for a more robust balance sheet. We plan to reactivate 10 aircraft in October, with an additional 15 to follow in 2025.
With ongoing customer experience initiatives and a rapidly expanding network, the future is bright for AirAsia as we accelerate into our goal of being the world’s best airline.” Fernandes further emphasised: “Closing this deal marks a critical turning point for AirAsia. We are not merely recovering from the pandemic’s impact—we are emerging stronger than ever.
This financing underscores the effectiveness of our strategic planning and the unwavering support of our investors, positioning us for a bright and prosperous future.” Evercore Asia (Singapore) Pte. Ltd.
served as the sole financial advisor to Capital A for this deal, with global legal guidance from A&O Shearman and local legal counsel from Christopher & Lee Ong..
