Thai AirAsia to Issue 2B THB in Debentures with 6.80% Interest per Annum Placing Full Focus on International Routes

BANGKOK, 24 May, 2022 - Thai AirAsia (TAA), the low fare carrier with the largest market share in Thailand, is preparing to issue debentures worth a combined value of no more than 2 billion THB to Institutional Investors and High Net Worth Individuals (II&HNW). The debentures’ tenor is two years with a coupon of 6.80% p.a. (quarterly payable), and fully guaranteed by Asia Aviation Plc. (AAV). 

The debentures are expected to be subscribed between 27-29 June, 2022 with a minimum subscription of 100,000 THB and the multiple of 100,000 THB. Purchase can be made through Globlex Securities Co. Ltd. and KTBST Securities Plc. For further information, please call 02-687-7549 and 02-351-1800 ext. 1.

The fundraising exercise is taking place to bolster Thai AirAsia’s (TAA’s) financial stability and for strategic investment in its growth. Main use of the fund will be to support the airline’s recovery plans to initiate further growth of key domestic and international routes to capture increase in demand from relaxation of travel restrictions in key markets of Thai AirAsia.

Mr. Santisuk Klongchaiya, Chief Executive Officer of Thai AirAsia, pointed out that Thai AirAsia (TAA) has proven its ability to overcome this crisis and has turned the corner as demonstrated by resumption of both domestic and international flights. At present, Thai AirAsia has resumed its entire domestic route networks and is flying to 8 countries with 19 routes. This include the Maldives, Cambodia, Malaysia, Singapore, Vietnam, Indonesia, India and Laos. This resumption is to accommodate the large surge in demand for international travelers who have made Thailand their first destination now that the COVID-19 pandemic has subsided.

“I am confident we have passed the aviation industry’s lowest point and have entered into a time of recovery and rejuvenation. This fundraising process will further bolster our liquidity, stability and ability to forge forward. AirAsia has already received a strong vote of confidence from both its customers and investors and has maintained overwhelming goodwill from all stakeholders. We believe this debenture sale will be well received by investors as before, as Asia’s best low cost carrier,” Mr. Santisuk said.

During Quarter 1 of 2022, Thai AirAsia added 11,002 flights and achieved an average load factor of 73 percent, delivering very pleasing key operational statistics as compared to the same period last year. The positive signals for aviation have prompted the carrier to set a target of 10.4 million people served, an average load factor of 78 percent and a fleet of 53 aircraft for 2022. In addition, TAA aimed to reach 100% of pre-Covid-19 capacity for domestic within this year together with maintain its leading position in Thailand.

Throughout the previous period, Thai AirAsia continued to elevate its service standards, adopting technologies for safety and hygiene compliance and enhancing its safety and on-time performance.

Thai AirAsia placed third for on-time performance in the world by a low-cost airline on the Cirium ranking, and was recognized with two awards from the Tourism Authority of Thailand; the Best of SHA Awards recognition for aircrafts and the Best of SHA 3-Star recognition for businesses with above average adherence to SHA standards. AAV, at the same time, was chosen to list on the Thailand Sustainability Investment (THSI) index of the Stock Exchange of Thailand for a third year, affirming its attractiveness as an investment and readiness for sustainable growth.

Thai AirAsia (FD) and Asia Aviation Plc. (AAV) are in no way involved with the rehabilitation plan of Thai AirAsia X as they are separate entities with discrete operations and routes; Thai AirAsia (FD) focuses on providing high-frequency service on short-haul domestic and  international routes, whereas Thai AirAsia X (XJ) providing service on long-haul international routes with flying times over four and a half hours  from hubs such as Japan and South Korea.