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3/28/13

Garuda will Publish Rp 2 Trillion Bonds

By: Friska Yolanda

REPUBLIKA.CO.ID, JAKARTA - PT Garuda Indonesia Tbk plans to issue bonds worth Rp 2 trillion. The plan of these bonds will be issued in the second quarter of 2013.



Besides obligas company also plans to conduct a rights issue. This is done to support the funding needs of the company in driving growth performance.

Rights issue as much as 10 percent of the company's shares. "We want to optimize shareholder approval," said President Director of Garuda Indonesia Satar in Jakarta, Wednesday (27/3).

Shareholders have agreed to release a maximum of 40 percent of Garuda Indonesia to the public. Currently the company's outstanding shares in Indonesia Stock Exchange is as much as 30 percent.

Finance Director of Garuda Indonesia Handrito Hardjono reveals bond and rights issue carried out to support the company's plans to add a new fleet until 2015. This year the company plans to add at least 33 new aircraft.

At the end of 2012 the company has a fleet of 106 units including its subsidiary, Citilink. This year the company targets to increase fleet to 139 units.

Handrito added this year the company has not planned dividends to shareholders even though the company posted significant profit growth. The Company is still tied to an agreement with the lender to make a loan repayment from the Garuda profit.

"In our prior agreement to pay obligations to creditors," said Handrito.
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