REPUBLIKA.CO.ID, JAKARTA - A National flag carrier, PT Garuda Indonesia issued bonds worth two trillion to support the company's performance. The bond has a tenor of five years with a coupon of 8.25 to 9.25 percent per year.
"About 80 percent of the bond will be used to purchase aircrafts, while 20 percent will be used as working capital for aircraft lease payments," Satar said on Wednesday.
Garuda Indonesia is expected to operate 194 aircrafts in 2015, with 144 units for Garuda Indonesia and 50 other units for its subsidiary, Citilink. This year, the company will buy 24 new aircrafts to complete 106 units of existing fleet at this time.
The state-owned airline will bring some new types of aircrafts, such as B737-800NG, B777-300ER, A330-300 and A320. Garuda Indonesia has appointed Mandiri Securities and Bahana Securities as underwriter. The initial offering will be conducted on June 11-14 and June 17-19.
International rating agency, Fitch Ratings assigned a rating A (idn) to Garuda Indonesia's bond. This ranking is based on the company's long-term ratings.
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