AirAsia Group details $40m assistance to Philippines AirAsia

AirAsia Group has disclosed that it extended approximately $40m in advances and corporate guarantees to Philippines AirAsia in November-December. The low-cost airline group on 19 November provided a $19.1 million corporate guarantee to Filipino bank BDO Unibank. This was in relation to the restructuring of a three-year, $35m loan to Philippines AirAsia, the group says in a 26 February disclosure to Bursa Malaysia. On 29 December, AirAsia Group through AirAsia provided AirAsia Inc with a corporate guarantee and cash advances amounting to Ps991m ($20.4m), with Citibank Philippines as the beneficiary. In support of that move, AirAsia Group pledged one of AirAsia Berhad’s spare engines for an uncommitted short-term revolving credit facility applied for by Philippines AirAsia. AirAsia Group’s latest annual report for 2019 indicates that AirAsia Berhad is the legal name for the Malaysia-based LCC AirAsia, and AirAsia Inc refers to the AirAsia Philippines airline. The same report states that AirAsia Group’s effective equity interest in the Filipino carrier stood at 40%.<br/>