Garuda Indonesia calls for $ 500 million refinancing

KONTAN.CO.ID – JAKARTA . PT Garuda Indonesia Tbk (GIAA) aims to obtain a loan of 500 million US dollars. The fund will be used to repay the debt maturing this year.

Director of Finance and Risk Management Garuda Indonesia Helmi Imam Satriyono said that the weakening of the rupee has happened to change the currency of the previous loan of the rupee is now a dollar . "The $ 500 million comes from syndicated loans and bilateral loans," he said Monday (30/7).

Helmi mentioned that GIAA is still in discussions with the banks to be able to distribute syndicated financing with a target of 300 million US dollars. The remaining $ 200 million is expected to come from bilateral loans.

Currently, the company's short-term debt maturing this year represents 65% of GIAA's total loan. Helmi said that in addition to refinancing the company also negotiated to extend the maturity period.

In terms of financial efficiency, GIAA will increase the level of coverage to 50% of the previous 20% to anticipate the weakening of the rupee against the US dollar. "Our first half could be significant savings (hedging) of $ 35 million.In the future, we will continue to monitor," Helmi said.

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