AirAsia Group obtains loan for logistics hub | New
Malaysian group AirAsia has secured a MYR 300 million ($ 72 million) loan from the Sabah Development Bank, mainly to improve its logistics network within the state.
“This loan is in line with AirAsia’s backbone in the digital sector. The main objective of the loan is to improve logistics in Sabah by increasing its supply chain and connectivity, thereby creating more than 100,000 new jobs, ”the group said in an October 23 communication to Bursa Malaysia.
He adds: “The company would like to point out that this loan is not backed by a government guarantee. “
The loan, which is part of AirAsia Group’s fundraising exercise, has been approved and disbursed.
As agreed by the parties to the loan, MYR 110 million will be used to partially finance a project to transform Kota Kinabalu International Airport into an international air hub for AirAsia operations.
Kota Kinabalu is the capital of the state of Sabah. The remainder of the loan will finance development projects undertaken by other AirAsia entities.
The group will use MYR 170 million to establish and operate Ourfarm, its digital food supply chain and cold chain facilities in Sabah.
It will spend MYR 10 million to improve e-commerce platforms and the marketing of Sabah products, and MYR 10 million to further promote Sabah tourism on its digital platform, airasia.com.