Monday, July 16, 2012

Garuda plans to raise US$200 million loan from Citi & UBS

PT Garuda Indonesia Tbk negotiating with Citibank, UBS, and several domestic and foreign banks to seek loan worth US$200 million which will be used for working capital in 2012.

The new loan was still on loan restructuring covenant framework with a number of old debtor which was 5 times from earnings before interest, tax, depreciation, and amortization (EBITDA). Along with installment repayment, Garuda chance to receive new loan is more open.
 
Garuda only have US$300 million debt and will be paid off by 2015. “With smaller outstanding debt we are freer to seek new funding for business development."

As the initial public offering last year, Garuda planned a quantum leap program in the business development. The airlines planned to have 194 aircraft by the end of 2015 from the current 92 units.

In recent years, Garuda aggressively met various types of aircraft procurement agreements. Some of them were Boeing 777 (10 units), Airbus330 (21 units), Airbus320 as many as 25 units with the option of adding 25 units and Boeing737-800 NG as many as 25 units with the option of adding the same amount.

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