AirAsia to Raise $1 Billion in Debt via Parent Company

Capital A Berhad, the parent of AirAsia, is planning to raise more than $1 billion in debt and equity and will list some of its businesses through a blank-cheque company, the Financial Times reported on Oct 25. CEO Tony Fernandes has agreed to a deal with Aetherium Acquisition, a special purpose acquisition company, and plans to list several businesses through it next year, the FT reported, citing two people familiar with the deal.

This includes a new business extending the AirAsia brand to companies hoping to start airline franchises in developing countries, the report said. The group has been evaluating fundraising options for a planned U.S. listing after pandemic travel restrictions hit it in Asia, leading Bursa Malaysia Securities to classify it as a PN17 company, or financially distressed, last year.

The potential fundraising also includes a $150 million loan from Bangkok Bank this month, FT said.

Capital A Berhad, doing business as AirAsia, is a Malaysian multinational low-cost airline based near Kuala Lumpur. It is Malaysia's largest airline in terms of fleet size and destinations. AirAsia has scheduled domestic and international flights to over 165 destinations in 25 countries.

Malaysia's national football team, Singapore's national football team, Jamshedpur FC, and Queens Park Rangers are all sponsored by AirAsia. AirAsia has previously sponsored Manchester United as well as the Asia leg of Taylor Swift's Red Tour.