AirAsia Bhd has completed the long-awaited issuance of 559 million shares to its group chief executive officer Tan Sri Tony Fernandes and executive chairman Datuk Kamarudin Meranun for RM1.01 billion. (($224 million). More than half of the money raised will help to partially pay off loans, as well as fund aircraft, engines and spare parts and make pre-delivery payments. Malaysian banks CIMB and RHB announced in a filing to Bursa Malaysia that Bank Negara Malaysia, the central bank of Malaysia, has granted approval for the funding.

The shares were placed out at RM1.80 a piece to Tune Live Sdn Bhd, a company equally shared by Fernandes and Kamarudin.
“The share issuance has been completed following the listing of and quotation for the subscription shares on the Main Market of Bursa Securities on Jan 26, 2017,” said AirAsia via CIMB Investment Bank Bhd and RHB Investment Bank Bhd in a filing with Bursa Malaysia.

Bursa Malaysia had previously extended the share issuance four times because AirAsia was unable to acquire the necessary approval from Bank Negara Malaysia as it involved partial offshore funding. To recap, AirAsia on April 1, 2016 entered into a conditional subscription agreement with Tune Live to pay RM1.01 billion for an additional 16.7% stake in AirAsia.

Following the completion, Fernandes and Kamarudin saw their indirect stake increase to 32.18%. AirAsia shares closed lower at RM2.47 yesterday, with a market capitalisation of RM8.35 billion.