Malaysia AirAsia's 500 mln rgt sukuk issue approved

KUALA LUMPUR - Malaysian budget carrier AirAsia Bhd's (AIRA.KL: Quote, Profile, Research) proposed 500 million ringgit ($158.5 million) sukuk (Islamic bond) has been approved by the market regulator, the airline said on Monday.

The airline said proceeds from the sukuk would be used to part finance its capital expenditure.

Bank Islam Malaysia and Kuwait Finance House (Malaysia) (KFIN.KW: Quote, Profile, Research) are the joint principal advisers, lead arrangers and lead managers for the issue.

Kuwait Finance House is also the guarantor for the sukuk programme, it said. Malaysian Rating Corp has assigned a long-term rating of AA+(bg) for the issue.