AirAsia Confirms Securing RM300 Mln Loan From SDB

KUALA LUMPUR: AirAsia Group Bhd has confirmed that it has secured a RM300 million loan from Sabah Development Bank Bhd (SDB) and not from any government financing or guarantee.

In a filing with Bursa Malaysia today, the budget airline said the loan had been secured as part of the group’s fundraising exercise and to pivot the airline into the digital business.

It said the loan was mainly intended to enhance AirAsia’s logistics presence in Sabah, creating over 100,000 new jobs in the process.

The fund will be used for specific development projects, including to establish OurFarm’s (its agriculture e-commerce platform) digital food supply chain and cold chain facilities in Sabah (allocation of RM170 million) and to part-finance a project to turn Kota Kinabalu International Airport into an international hub for AirAsia Bhd (RM110 million).

A sum of RM10 million would be used to enhance e-commerce platforms and marketability of products from Sabah and another RM10 million would be for further promoting Sabah tourism destinations on, the digital super app of AirAsia, it added.