Thai AirAsia to raise up to $58.4 million with debentures

Thai AirAsia (FD, Bangkok Don Mueang) is preparing to raise up to 2 billion baht ($58.4 million) by issuing debentures “to institutional investors and high net worth individuals” as it seeks to strengthen its “financial stability and for strategic investments”. in its growth,” he revealed in a disclosure.

The two-year debt instrument bears an annual coupon of 6.8% and is payable quarterly and fully guaranteed by parent entity Asia Aviation, the filing dated May 24 said.

The debentures are expected to be subscribed between June 27 and June 29, with a minimum subscription of THB 100,000 (USD 2,918) and in multiples of the same amount.

The main use of the funds raised will be “to support the airline’s recovery plans, to initiate further growth of key domestic and international routes to capture the increase in demand resulting from the easing of travel restrictions in Thai AirAsia’s key markets”.

Thai AirAsia CEO Santisuk Klongchaiya said in the statement that the low-cost carrier has “proven its ability to overcome this crisis and reached a milestone, as evidenced by the resumption of domestic and international flights.” It has so far resumed its full domestic network and is gradually resuming international operations.

According to ch-aviation’s advanced fleets module, Thai AirAsia operates forty-five A320-200s, ten A320-200Ns and two A321-200NXs. Just over half of the fleet of 57 aircraft is currently in operation. It operates 22 routes, according to ch-aviation’s capabilities module, 12 of which are domestic within Thailand.

The move came a week after its Thai subsidiary AirAsia X (XJ, Bangkok Suvarnabhumi) – whose parent company is Malaysian company AirAsia X – filed for bankruptcy but pledged to continue operations as foreseen.

The latest filing clarified that Thai AirAsia and Asia Aviation “are in no way involved in the Thai AirAsia X rehabilitation plan as they are separate entities with separate operations and routes. Thai AirAsia focuses on providing high frequency service on short-haul domestic and international routes, while Thai AirAsia X provides service on long-haul international routes with flight times over four hours and half from hubs such as Japan and the South. Korea.”

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