BC Tam 2 Report post Posted April 1, 2009 AirAsia to raise RM3b in 2010 KUALA LUMPUR, April 1 - Malaysian budget carrier AirAsia (AIRA.KL: Quote, Profile, Research, Stock Buzz) needs to raise RM3 billion ringgit next year as it expects to take delivery of another 24 new aircraft, a company official said today. Mohshin Aziz, investor relations manager at AirAsia, said the RM3 billion was on top of the 2 billion ringgit planned for 2009. AirAsia told investors in March it needs to raise RM2 billion to RM2.1 billion in order to take delivery of 14 Airbus A320 aircraft this year. Investment bank UBS said AirAsia disclosed early this year that it had secured funding for its aircraft deliveries in 2009 and 2010. "Management have indicated that these facilities contain no material covenants, so we would be surprised if the company faced any funding difficulties over the next couple of years," said UBS in a report published yesterday. from here What is a "material covenant" ? Thanks ! Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted April 1, 2009 "material" - significant "covenant" - restrictions/limitation/ requirements e.g. the financing is not tied to, say, AK getting at least RM100m in net profit per annum over next 5 yrs or TF getting a speeding ticket in the next 10 years. So, if TF gets booked for doing 180km/h in a 60km/h zone, then the amounts financed may become due and payable immediately, as opposed to being payable in instalment over the pre-agreed tenure. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted April 1, 2009 Thanks ! Looks like I've also been imposing our version of material covenants all this while - the kids will surely testify ! Share this post Link to post Share on other sites
