How much of the RM300 million loan has AirAsia repaid?

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AirAsia Has Repaid Over Half of its RM300 Million Loan from Sabah Development Bank

AirAsia Group has significantly reduced its RM300 million loan from the Sabah Development Bank, repaying more than half of the principal amount. The airline has paid down the loan to RM170 million and is scheduled to continue repayments over the next two years, having already incurred RM69 million in interest. This loan was crucial for the airline's survival during the Covid-19 lockdown period.
Loan Repayment Status

The total principal amount of the loan has been reduced from RM300 million to RM170 million. This substantial repayment indicates AirAsia's commitment to fulfilling its financial obligations. The airline plans to complete the repayment of the remaining balance within the next two years.
Interest Paid on the Loan

In addition to the principal repayment, AirAsia has paid RM69 million in interest on the RM300 million loan. This figure highlights the cost associated with borrowing the funds, which were essential for the company's operational continuity during a period of severe disruption.
Loan Approval and Purpose

The RM300 million loan was approved during the Covid-19 lockdown, a time when AirAsia faced the risk of closure. According to Capital A Bhd CEO Tan Sri Tony Fernandes, the loan was instrumental in enabling the airline to navigate the two-year lockdown period. Portions of the funds were also allocated for developing the group's logistics arm, Teleport, including cold storage facilities in Sabah, and for the launch of its new app, Move.
Context of the Loan

The loan's approval in 2020 had initially drawn some scrutiny, with concerns raised about it being a potentially risky venture for the state bank. However, then-Sabah chief minister Datuk Shafie Apdal had described it as a calculated move intended to benefit the state. Fernandes emphasized that the deal was mutually beneficial, allowing AirAsia to survive, continue operations, and support the tourism sector, while also ensuring the bank received its interest and principal repayment.

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How much of the RM300 million loan has AirAsia repaid?

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