TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Garuda to partially settle bond repayment through tender offer
The flag carrier has allocated a maximum of US$50 million for principal value, which is sourced from its internal cash.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A Garuda Indonesia Boeing 737 Max 8 airplane parks at the Garuda Maintenance Facility AeroAsia at Soekarno-Hatta International airport in Tangerang, Banten, on March 13, 2019. (Reuters/Willy Kurniawan)
F
lag carrier PT Garuda Indonesia has offered a partial repayment of its notes and sharia-compliant bonds (sukuk) through a tender offer scheme.
The firm has allocated a maximum of US$50 million to pay for principal value from its internal cash. The amount does not include any outstanding interest payments or payments of outstanding periodic distributions, which it would determine later.
Creditors willing to participate in the tender offer were given until Dec. 15, and partial repayment is planned to take place on Dec. 21, according to a disclosure to the Singapore Stock Exchange (SGX).
A tender offer is the process where a company retires all or a portion of its outstanding bonds or other debt securities, by making an offer to repurchase a predetermined number of bonds at a specific price and during a set period of time.
Garuda's president director Irfan Setiaputra said the plan was part of the company's efforts to improve its equity performance, as well as a representation of its goodwill to settle its obligations to creditors.
The partial repayment also takes into account current market volatility, including increased interest rates in the US dollar currency market, he stated.
"This corporate action represents Garuda's commitment to moving adaptively in optimizing fundamental improvements in its operating performance, by paying close attention to the macroeconomic outlook in order to maintain the momentum of our performance recovery," Irfan said in a statement on Monday.
