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Garuda to issue global bonds worth $300m next year
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A Garuda Indonesia aircraft takes off from I Gusti Ngurah Rai International Airport in Bali on June 13. (Antara/Fikri Yusuf)
N
ational flag carrier Garuda Indonesia plans to issue global bonds worth US$300 million, about Rp 4 trillion, partly to refinance bonds coming due next July.
Garuda finance and management risk director Helmi Imam Satriyono said his company needed to collect funds greater than the Rp 2 trillion in maturing debt, as it also had to finance planned expenditure next year.
“We need more funds, not only for refinancing,” said Helmi in Jakarta on Tuesday, as reported by kontan.co.id, but he declined to reveal the company’s spending plan.
Read also: Garuda Indonesia kicks off Jakarta-London direct flightThe carrier planned to complete the issuance in the first half of 2018, Helmi said, adding that Garuda had appointed BNP Paribas as the advisor.
Helmi expressed his optimism that Garuda would perform well next year after suffering losses recently. “We expect to collect a profit next year,” said Helmi, declining to mention concrete tagets.
Up to the third quarter, the company’s loss this year reached $222.07 million, said Helmi, adding that the company expected to reduce the loss to $215 million by the end of the year.
Fahressi Fahalmesta, an analyst from securities firm Ciptadana Sekuritas, said that Garuda Indonesia had begun to carry out efficiency measures, which were expected to reduce its costs by $100 million this year. (bbn)
