Garuda Indonesia asks all around to pay debtsIndonesia’s national airline also a state-owned enterprise (SOE), PT Garuda Indonesia (Persero) Tbk (GI), revealed its plan to gather US$900 million to settle its debts. According to GI’s 2018 financial statement, the airline has a US$1.63 million debt due in a year. Meanwhile, a US$77 million debt will be due more than a year.
Revealing its financial statements to the Indonesia Stock Exchange (ISE), there are three ways that will be conducted. First, GI will release its US$750 million global sukuk (Islamic bond) which will be due in 2024.
Then, it will pay its coupons to each investor. Regarding the coupon levels, it is being negotiated.
Reportedly. GI also has a US$500 million debt from the Islamic bond due in 2020. The debt securities were released in 2015.
Second, GI plans to seek funding through private placement, as much as US$750 million. Same as the Islamic bond, the private placement will reach its due no later than 2024. Third and the last way, GI will use the peer-to-peer lending scheme, as much as US$500 million, and will pay its interest once in three months.
Either way, GI’s management will have to get the signature of the stakeholder in the extraordinary general shareholders meeting (RUPSLB) on 22 January 2020. The fundraising is believed to extend GI’s debt profile.
Previously, GI planned to release its global bond in Q1 2020. The result of the action was supposed to pay the debt.