Deutsche Bank is marketing a $230 million private-credit facility for AirAsia Aviation Group, testing investor demand for the Malaysian budget carrier amid a challenging operating environment, according to people familiar with the matter.

The deal arrives as airlines worldwide grapple with elevated jet fuel costs that have compressed margins across the sector. Private-credit markets have become an increasingly vital funding avenue for companies seeking capital outside traditional bank lending or public bond markets, particularly those with complex balance sheets.

AirAsia, once Southeast Asia's dominant low-cost carrier, has been working to strengthen its financial position following pandemic-era disruptions that devastated air travel across the region. The size of the Deutsche Bank-led facility underscores the airline's continued ability to access capital, though the private placement suggests caution about broader market conditions.