National airports operator Malaysia Airports Holdings (MAHB) plans to raise up to 2.5 billion ringgit ($733 million) to fund a new low-cost carrier terminal and overseas expansion plans.

The operator of main gateway Kuala Lumpur International Airport wants to raise 2 to 2.5 billion ringgit by June, says its chief financial officer Faizal Mansor.

"We will look at all options to raise the money, such as debt or equity," he adds.

The funds will be used to build the new low-cost carrier terminal in Kuala Lumpur, due to be completed in 2011, as well as for overseas expansion opportunities.

Mansor says no specific countries have been identified yet for the expansion plans.

Local media reports say MAHB has shortlisted five companies to build the low-cost carrier terminal building and satellite tower.

The new terminal is expected to be completed by the third quarter of 2011. It will be able to handle 30 million passengers a year, with potential for expansion to 45 million passengers.

Source: Air Transport Intelligence news