AirAsia shares up 3.6pc on positive capital raising plans

AirAsia planes are seen parked at Kuala Lumpur International Airport 2, during the movement control order due to the outbreak of the coronavirus disease (Covid-19), in Sepang, Malaysia April 14, 2020. — Reuters pic

KUALA LUMPUR, Oct 23 — Shares of AirAsia Group Bhd were higher during the morning trading session after the low-cost carrier had reportedly secured a loan to support its ongoing capital raising plans.

Citing a source, Reuters reported that the RM300 million loan issued by the Sabah Development Bank Bhd would help to tide the airline over for two months, financing local operations.

This is in light of the rising number of Covid-19 infections that would keep air travel muted for a longer period.

Riad Asmat, chief executive officer of the group’s Malaysian unit, AirAsia Bhd, said that the loan is part of the group’s capital raising exercise.

“We are pleased with the progress,” he said.

At 10.57am, shares of AirAsia rose two sen or 3.60 per cent to 57.5 sen with 9.48 million shares transacted. — Bernama

Source: Malay Mail