Garuda Indonesia president director Pahala N Mansury said his company would consider asset securitization to collect the funds, although it would also look into other options such as bank loans or a global bonds issuance.

“Our focus is to seek funds at lower costs,” Pahala said in Jakarta on Thursday, as reported by kontan.co.id.

Asset securitization was conducted by state-owned toll road operator PT Jasa Marga to obtain funds by offering revenue from the company’s assets as guarantees.

Garuda Indonesia could similarly offer revenue from certain flight routes.

“Future revenue from certain routes could be considered to have potential by the market,” Pahala added.

However, he did not discuss the total amount the company sought to attain through asset securitization and what assets would be offered as guarantees.

Previously, Garuda Indonesia also announced its plan to issue global bonds worth US$750 million in an attempt to diversify its source of funds with lower interest rates.

Data from the Indonesian Central Securities Depository (KSEI) shows that the airline has Rp 2 trillion in debt that will mature on July 5 with an interest rate of 9.25 percent. (bbn)  

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