News


Clarification In Relation To the Various News Articles On The Malaysian Anti Corruption Commission ("MACC") Investigating The Aggregate Rm300 Million Loan Facilities From Sabah Development Bank ("SDB")

BackOct 30, 2020
Type Announcement
Subject OTHERS
Description

AIRASIA GROUP BERHAD ("AAGB" or THE "COMPANY") CLARIFICATION IN RELATION TO THE VARIOUS NEWS ARTICLES ON THE MALAYSIAN ANTI CORRUPTION COMMISSION ("MACC") INVESTIGATING THE AGGREGATE RM300 MILLION LOAN FACILITIES FROM SABAH DEVELOPMENT BANK ("SDB")

Reference is made to the various news articles regarding the MACC investigating the aggregate RM300 million loan facilities approved by SDB to AirAsia (“Facilities”), and the Company’s announcement (reference number GA1-23102020-00131) on 23 October 2020, confirming and clarifying the purposes of the Facilities.

 

AirAsia wishes to reiterate that the transaction was completed in accordance with all laws, policies and procedures pertaining to its application which took five (5) months to complete from the time of application.

 

The Facilities would enable AirAsia to accelerate its expansion plans to transform Kota Kinabalu into an international hub for its passenger and logistics operations. AirAsia has been providing domestic and international connectivity to Sabah since 2001, flying in 660,000 visitors to the state, supporting almost 60,000 jobs in the state and directly contributing almost 1% to the state GDP. With the Facilities, AirAsia’s contribution is expected to double within the next 10 years and help Sabah regain its position as a top tourism destination post-Covid-19.

 

The Facilities would also be used to develop and enhance cold chain facilities in Sabah that would increase the marketability of the state’s fresh produce domestically and internationally through AirAsia’s OURFARM digital food supply platform. This would potentially result in increased profits for farmers and fishermen in the state. This is in line with Sabah's mission of becoming a top food producing state in Malaysia and contribute towards the country's food security.

 

The Facilities have been approved by SDB for development of the above projects and are intended to bring about significant positive socio-economic impacts to the  state of Sabah. Besides their strategic values, the components of these projects also provide solid commercial basis and merits as reflected in the terms and conditions imposed upon AirAsia. AirAsia can confirm that all discussions and negotiations with SDB and its officials were all conducted in an appropriate manner, on an arm's length basis.

 

This announcement is dated 30 October 2020.

 


Announcement Info

 

Company Name AIRASIA GROUP BERHAD
Stock Name AIRASIA
Date Announced 30 Oct 2020
Category General Announcement for PLC
Reference Number GA1-30102020-00202