October 6, 2021

AirAsia Shares Soar After Getting RM500 Million Loan

 Investors welcomed the announcement of AirAsia Group Berhad which has received loan approval from Danajamin Nasional Berhad (Danajamin) which is guaranteed up to RM500 million under the Danajamin PRIHATIN Guarantee Scheme.

As a result, AirAsia shares rose three sen or almost 2.7% to RM1.15 at the opening of trading today, accumulating a market capitalization of RM4.4 billion.

According to research firm PublicInvest Research, the approval of the loan has eased AirAsia’s burden and helped improve its operations as cross -state and international sanctions reopen soon.

In a statement issued on Tuesday, AirAsia said the funding would be used for working capital, where it helps cover staff costs and key operating expenses such as aircraft maintenance.

The loan approval was reportedly made by an AirAsia lender under a syndicated financing facility guaranteed by Danajamin through the Business Financing Guarantee Company (SJPP) which is a wholly owned entity of the Ministry of Finance of the Government of Malaysia.

This indirectly shows the strong support from the Malaysian government for the airline to continue to stand firm in playing an important role in recovering the country's economy from the Covid-19 pandemic.