KUALA LUMPUR, Oct. 22 (Reuters) – Malaysian low-cost airline AirAsia Group Bhd has secured a loan as part of its ongoing fundraising plans, an executive said on Thursday.

Riad Asmat, CEO of the group’s Malaysian unit, AirAsia Bhd, said “a loan has been approved and disbursed”, in response to a question from Reuters about a New Straits Times report that the airline had secured $ 300 million. ringgit ($ 72 million). ) ready to keep it afloat amid the coronavirus pandemic.

The report, citing sources, said the airline took the loan from Sabah Development Bank Bhd and would run the airline for two months, funding local operations.

“We would not be able to disclose the details, including the lender (s) and the amount involved. This loan is part of the capital raising exercise by AirAsia Group, which is going in the right direction and we are satisfied with the progress made, ”said Riad.

The Sabah Development Bank could not immediately be reached for comment.

AirAsia said it was looking to raise up to 2.5 billion ringgit by the end of the year, of which 1.5 billion ringgit could be in the form of bank loans.

The group also demanded that part of its loans be guaranteed by the government.

Two weeks ago, its long-haul branch AirAsia X Bhd proposed a $ 15.3 billion debt restructuring and share capital reduction to avoid liquidation.

$ 1 = 4 1440 ringgits Report by Liz Lee; Editing by Mark Potter