AirAsia Bhd has accepted a five-year term loan of up to US$150 million (RM705 million) from a financial institution.

In a filing with Bursa Malaysia today, Capital A Bhd, the parent company of AirAsia, said the airline will use the loan for working capital requirements and fund aircrafts and engine maintenance costs.

“The term loan was secured by, inter-alia, a corporate guarantee from Capital A, which shall remain throughout the term of the term loan,” it said.

Capital A added Bank Negara Malaysia on Sept 19, 2023, approved AirAsia’s application for the term loan under its Foreign Exchange Policy