Thai AirAsia (FD, Bangkok Don Mueang) hopes to raise up to TBH1.2 billion baht (USD33.2 million) via the issuance of long-term unsubordinated and secured callable debentures.

Asia Aviation Public Company Limited, the publicly listed Thailand-based holding company that owns Thai AirAsia, informed the Stock Exchange of Thailand (SET) of the proposed debenture offer on September 20. The company intends to offer one million debentures at THB1,000 (USD27.6) per debenture. It has made provisions for an over-allotment option, a so-called greenshoe option, of a further 200,000 debentures at the same price.

The debentures, officially No. 2/2023 Due B.E. 2569, will be offered to institutional and high net-worth investors between September 25 - 27, and issue on September 28. They will pay 6.9% per annum, are rated as BB+ stable, and have a 30-month lifespan.

Speaking to the Bangkok Post newspaper last month, Thai AirAsia CEO Santisuk Klongchaiya said the airline had garnered a 37% domestic market share in the first half of 2023, well above its pre-pandemic market share, and was seeking to become Thailand's dominant domestic carrier. He said passenger loads were averaging 94% across the network, and ticket prices were 10 - 15% higher than before Covid-19. In 2024, the airline intends to expand its fleet to approximately 60 aircraft, up from the current 53.

The latest set of financials, for the three months to June 30, 2023, shows Thai AirAsia lost TBH1.012 billion (USD28 million) for the period on revenue of TBH10.036 billion (USD277.3 million). In the comparable 2022 period, the airline lost THB4.723 billion (USD130.5 million).