KUALA LUMPUR (Jan 6): AirAsia Bhd's wholly-owned unit AirAsia Global Notes Ltd has established a US$1 billion multi-currency medium term note programme, the net proceeds of which will be used by AirAsia for its "general corporate purposes", including working capital and refinancing indebtedness of AirAsia.

Under the programme, the company may, subject to compliance with relevant laws, issue notes from time to time in series or tranches denominated in US dollars or any other currency as may be agreed between the company, AirAsia and the relevant dealers, said AirAsia in a bourse filing today.

Notes issued under the programme will be unconditionally and irrevocably guaranteed by AirAsia, and will be offered and sold outside the US.

The proceeds from the debt programme could also be used for financing the equity portion of AirAsia's aircraft financing or other airline investment opportunities, all expenditure related to the issuance of the notes, and/or for such other purposes that may be specified.

"Application has been made to the Stock Exchange of Hong Kong Ltd for the listing of the programme by way of debt issues to professional investors only. An approval in-principle has been obtained from Bursa Malaysia Securities Bhd for the listing of the programme and any notes that may be issued pursuant to the programme under an exempt regime.

"The notes to be issued under the programme will be listed on Bursa Malaysia but will not be quoted for trading," it added.

Barclays Bank PLC, Singapore Branch is the sole arranger and together with CIMB Bank (L) Ltd and RHB Investment Bank Bhd are the joint dealers of the programme.

AirAsia has also mandated that Barclays, CIMB and RHB, as joint bookrunners and joint lead managers, arrange a series of fixed income investor meetings in Singapore, Hong Kong and London, starting on Jan 7, 2016.

Shares in AirAsia were trading 2 sen or 1.49% higher at RM1.36 as at 2.40pm, valuing the group at RM3.73 billion.

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