Thai AirAsia (FD, Bangkok Don Mueang) is preparing to raise up to THB2 billion baht (USD58.4 million) by issuing debentures “to institutional investors and high net worth individuals” as it seeks to bolster its “financial stability and for strategic investment in its growth,” it revealed in a disclosure.
The two-year debt instrument carries an annual coupon of 6.8% and is quarterly payable, 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 29 June, with a minimum subscription of THB100,000 (USD2,918) 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 from the relaxation of travel restrictions in key markets of Thai AirAsia.”
Thai AirAsia CEO Santisuk Klongchaiya pointed out in the statement that the low-cost carrier had “proven its ability to overcome this crisis and has turned the corner as demonstrated by resumption of both domestic and international flights.” It has so far resumed its full domestic network and is gradually resuming its international operations.
According to the ch-aviation fleets module, Thai AirAsia operates forty-five A320-200s, ten A320-200Ns, and two A321-200NX. Just over half of the fleet of 57 aircraft are currently active. It operates 22 routes, the ch-aviation capacities module shows, of which 12 are domestic within Thailand.
The move came one week after its affiliate Thai AirAsia X (XJ, Bangkok Suvarnabhumi) - whose parent is Malaysia's AirAsia X - filed for bankruptcy protection but vowed to continue operations as planned.
The latest filing clarified that Thai AirAsia and Asia Aviation “are in no way involved with the rehabilitation plan of Thai AirAsia X as they are separate entities with discrete operations and routes. Thai AirAsia focuses on providing high-frequency service on short-haul domestic and international routes, whereas Thai AirAsia X provides service on long-haul international routes with flying times of over four-and-a-half hours from hubs such as Japan and South Korea.”
