0 Garuda Gets $70m From Bank Permata

Garuda Indonesia, the nation’s flag carrier, has received a $70 million loan from Bank Permata for undisclosed purposes. The loan will mature in 24 months, Ike Andriani, vice president corporate secretary of Garuda Indonesia, said in a statement released in Jakarta on Wednesday. Bank Permata is a mid-size lender based in Indonesia. No other terms of the loan, such as the interest rate, were disclosed at the time. 

Garuda has been expanding its business in Indonesia, including tapping new routes in Europe and securing more aircraft. The airline has announced plans to sell $200 million of dollar- and rupiah-denominated bonds this year, finance director Handrito Hardjono said. Proceeds from the debt sale will help the airline to finance investments this year. The airline operator has targeted its capital expenditure at $200 million to $400 million this year. 

Garuda has also stood by its plan for its maintenance facility unit, Garuda Maintenance Facility AeroAsia, to list on the stock exchange this year amid plans to grow the subsidiary. GMF AeroAsia’s initial public offering has not been canceled, Garuda’s president director, Emirsyah Satar, said earlier this week. GMF AeroAsia, which offers services, maintenance and spare parts for planes, has won several overseas airlines as clients. 

Garuda, which is 69 percent owned by the government, needs to secure the approval of lawmakers to change the ownership of any part of its business, including a subsidiary. Emirsyah said that Garuda had appointed Mandiri Sekuritas as a financial adviser for the IPO. GMF AeroAsia is aiming for net income and revenue growth of around 20 percent this year, Emirsyah said. 

Last year, GMF AeroAsia booked Rp 2 trillion ($206 million) in revenue and Rp 110 billion in net income. Emirsyah declined to detail the percentage of shares to be floated but said Garuda could sell up to 20 percent, a ceiling approved by the House of Representatives. GMF AeroAsia was separated from Garuda and branded as a new company in April 2002.

source : the jakarta globe