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Garuda finalizes $300m global syndicated loan
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Garuda Indonesia president director Pahala N. Mansury (tempo.co/File)
N
ational flag carrier Garuda Indonesia is now in the final process to obtain a global syndicated loan worth between US$200 million and $300 million as part of the company’s effort to expand its business, the company’s president director, Pahala Mansury, said in Jakarta on Thursday.
He said the syndicated loan would be combined with other financial sources collected through securitization contracts of its collective assets (KIK EBA) expected to reach Rp 2 trillion ($138.58 million).
“We expect 60 to 70 percent of the financing to have tenors between two and four years. The finalization process of the plan is expected to be completed in September,” said Pahala as quoted by kontan.co.id.
He explained that this year, Garuda prepared capital expenditure (capex) between $250 million and $300 million for routine maintenance, and up to the first half of this year, the company had spent 60 percent of the capex.
He expressed the hope that his year, the company could perform better as in the first half, the company still suffered $114 million in losses.
The loss, however, had declined by 60 percent compared to the same period last year, which was recorded at $284 million because the company’s revenue increased by 5.9 percent from $1.8 billion to $1.9 billion.
While Pahala expressed the hope that the company would achieve the breakeven point this year, he also realized that the company would still face several problems including the 15 percent increase of fuel and rupiah depreciation.
The company recorded that spending for aviation turbine fuel (avtur) increased by 12 percent year on year to $639.7 million, or about 30 percent of company’s total spending in the first half. (bbn)
