Update COVID-19 in Indonesia: 104,432 confirmed infections, 4,975 deaths (29 July 2020)
29 July 2020 (closed)
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Garuda Indonesia, Indonesia's national airline, is planning to sell bonds worth IDR 2 trillion (US $205.1 million) in Quarter II - 2013. The bonds, which are denominated in IDR rupiah, will have a five-year maturity. Proceeds of the bond issuance will be used by the company for capital expenditure (capex), which includes investments in aircrafts and working capital. The airline is currently searching for a lead underwriter through a tender.
This year, Garuda has increased the allocated amount for capex to US $300-400 from last year's US $210. Apart from the bond proceeds, the airline will hold a rights issue (by releasing 10 percent of government-owned shares) and has secured bank loans to cover this year's capex. It has received loans totaling US $160 from Citibank and Bank Permata. The rights issue will be held after the bond issuance.
Garuda Indonesia is expanding aggressively through its Quantum Leap Program. Through this program, the airline aims to increase its number of aircrafts to 154, increase the number of passengers to 35.2 million, rejuvenate its fleet, increase the per week flight frequency, and obtain a fifth star from Skytrax.
Two days ago, Garuda reported its financial results of 2012. Shares of the airline are up 1.56 percent this year.