Indonesia's national carrier Garuda plans to sell bonds to finance expansion
JAKARTA- A senior official at Garuda Indonesia, the nation's flag carrier, said that the firm seeks to raise at least 200 million U.S. dollars from bond sales next year to finance its expansion plans, local media reported Friday.
Garuda's financial director Handrito Hardjono declared that next year's issuance will comprise dollar- and rupiah-denominated bonds. "With this combination, the amount of foreign-exchange loss can be minimized," Handrito was quoted by the Jakarta Globe as saying.
He did not provide any other terms of the notes, such as the tenor, coupon and investment banks to arrange the debt sale. He said that proceeds from the bond sales should be enough to cover at least half of next year's capital expenditure, with the remaining expenses to be covered by bank loans. "Seventy percent of our capital expenditure next year will be used for planes procurement, while the remaining will be used for working capital," he said, without giving out the total value of the expenditure.
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Posted: 26 Nov 2012 23:18:31