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JAKARTA, Feb 26, 2015 - (ACN Newswire) - Garuda Indonesia, the national airline of Indonesia, has signed a US$ 400-million bridge financing facility agreement with two financial institutions, the National Bank of Abu Dhabi and Dubai Islamic Bank, on February 18th, 2015. The facility is intended to bridge financing Garuda's fund raising plan in 2015, while waiting for the market to build strong momentum for Garuda to utilize and issue a US$ 500-million Global Sukuk as the take-out solution.
The agreement was signed by EVP Finance and Risk Management of Garuda Indonesia I Gusti Ngurah Askhara Danadiputra, Senior Vice President Business Head DCM & Syndication, Structured Finance, and Cash Management of Dubai Islamic Bank Sadiq Raza, and Managing Director and Global Head of Debt Origination & Distribution of National Bank of Abu Dhabi Andy Cairns.
The airline has mandated the two middle-east banks to act as the Initial Mandated Lead Arrangers ("IMLA"), the Bookrunners, and the Underwriters with respect to arrangement, primary syndication, and underwriting of the bridge financing facility. Alongside, both financial institutions had also committed to place this agreement as a backstop facility should the market is not favorable.
EVP Finance and Risk Management of Garuda Indonesia I Gusti Ngurah Askhara Danadiputra, commented on the agreement, "We are delighted to sign this bridge financing facility agreement as it shows the confidence the two banks have in Garuda Indonesia as we are now embarking our company-wide "Quick Wins Program" to increase our overall performance."
Garuda Indonesia carries out the "Quick Wins Program" as part of its further company's development strategy amidst the turbulent times the global aviation industry is facing nowadays and has tremendously affected the performance of global airlines, including Garuda Indonesia. In light of this condition, Garuda Indonesia carries out the "Quick Wins Program" to carry out the short-term program with the following main strategies:
- Increase "Revenue Generator", in which all potentials that may increase the company's revenue are optimized.
- Restructure "Cost Driver", in which Garuda will manage and restructure costs to increase efficiency,
- "Refinancing", in which Garuda implements various measures and strategies regarding financial aspects, to secure the company's financial condition.
Contact:
Garuda Indonesia
Pujobroto,
VP Corporate Communications
DID: +62 21 2560 1069
Email: corpcomm@garuda-indonesia.com
Topic: Loans & Financing
Source: Garuda Indonesia Group
Sectors: Airlines
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From the Asia Corporate News Network
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