KUALA LUMPUR, Nov 21 ― Loss-making Malaysian Airline System Bhd (MAS) has secured a state-backed Islamic bond facility to raise up to RM5.3 billion for the purchase of eight new widebody aircraft made by EADS’s Airbus.
The state-guaranteed bond was established through Turus Pesawat Sdn Bhd, a special-purpose vehicle owned by the ministry of finance, MAS said in a statement yesterday.
MAS has been struggling to remain competitive due to an ageing fleet, rising fuel costs and competition from low-cost carriers such as AirAsia Bhd.
Funds raised will go towards the acquisition of six Airbus A380s and two A330s, said MAS. Notes issued under the bond will have a tenure of up to 20 years.
The company has two outstanding bonds. It sold RM1 billion of Islamic bonds without a fixed maturity through a private placement in June, when it also issued a RM500 million Islamic bond. ― Reuters