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Malaysian low-cost airline AirAsia has raised $443 million in a dual-tranche financing to refurbish planes that were grounded during the pandemic and refinance its lease liabilities, the company said on Thursday.

AirAsia parent Capital A made the announcement after a Bloomberg News report earlier in the day.

Global investment manager Ares Management and Singapore-headquartered Indies Capital Partners have issued a $200 million tranche, while some aircraft lessors have offered $243 million to AirAsia.

Malaysia’s AirAsia says over 20 new airlines join Super App

The airline said it would use about $200 million to reactivate grounded aircraft, and the rest to refinance its lease liabilities and strengthen the balance sheet.

Evercore Asia (Singapore) Pte. Ltd. acted as the exclusive financial adviser to Capital A on this transaction.

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