AirAsia’s structured deal is another instance of the growing popularity of private credit in Asia that is fast becoming a serious rival to mainstream lending by offering higher, floating rates of return.
Budget carrier AirAsia Bhd has secured a US$443 million ($578.63 million) dual-tranche private financing to use partly for refurbishing planes grounded during the pandemic, according to people familiar with the matter.
Private credit funds Ares Management and Indies Capital Partners provided a US$200 million tranche for the refurbishment of the aircraft to get them back in the air, said the people who asked not to be identified discussing private matters. Aircraft lessors provided the other US$243 million portion to refinance lease liabilities.
