Malaysia Airlines defers payments on $362.5 million Islamic bonds

Malaysia's national carrier has deferred by six months payments to holders of 1.5 billion ringgit ($362.49 million) in Islamic bonds, CIMB Investment Bank, the facility agent, said.

In a notice on a central bank website, CIMB Investment Bank said Malaysia Airlines Berhad issued deferral notices last week on periodic distribution amounts due on Sept. 30 for 1.5 billion ringgit nominal value unrated perpetual sukuk musharakah.

Payments will resume at the next periodic distribution date on March 31 next year, it added in the notice, filed on Tuesday.

The global coronavirus pandemic has hit airlines hard, with nations shutting borders as a precaution, bringing travel almost to a grinding halt for months.

Malaysia Airlines, which had struggled financially even before the outbreak, said in April it had made cost cuts and was working with sole shareholder Khazanah Nasional for support to ride out the crisis.