Indonesia to help arrange $ 500 million bridge loan for Garuda as part of bond restructuring
JAKARTA, May 11 (Reuters) – The Indonesian government is working to set up a $ 500 million bridging loan for the national airline Garuda as the airline seeks to restructure Islamic bonds maturing next month, said a deputy minister on Monday.
State-owned Garuda said the coronavirus pandemic has created “an extremely difficult business environment” as countries impose travel restrictions to contain the spread of the virus. She has already obtained loans from the state lender Bank Rakyat Indonesia.
The airline will present options to investors in talks on restructuring the $ 500 million sukuk, including whether to extend the maturity from three to five years, said Kartika Wirjoatmodjo, deputy minister of enterprises. public.
“The $ 500 million sukuk, we will negotiate its extension. Another new $ 500 million bridging facility is still in the works, ”Wirjoatmodjo said in a text message in response to a request from Reuters.
Bloomberg reported on Monday that as another option, Garuda would offer bondholders installment repayments, in a proposal he will present to investors on May 18, and also quoted Wirjoatmodjo as saying that a bridging loan was intended to help the airline to meet working capital requirements for three to six months.
Irfan Setiaputra, chief executive of Garuda, told Reuters via text message that nothing had been decided in terms of options for the restructuring.
He said a bridging loan had not yet been secured, but confirmed that Garuda was in talks to secure more bank loans, in addition to a facility recently granted by Bank Rakyat Indonesia.
Rakyat Bank had accepted loans of $ 50 million and Rs 2,000 billion ($ 134.68 million), as well as a $ 200 million standby letter of credit for Garuda and its subsidiary Citilink to purchase gasoline. fuel, pay for aircraft rentals and other operational expenses, Garuda said in a statement last month.
Garuda, which is over 60% state-owned, resumed domestic flights last Thursday after authorities relaxed its ban on air and sea travel.
Last month, in a statement to the stock exchange, Garuda said its first-quarter operating income fell 33% from the same quarter a year earlier, due to a drop in passenger numbers and lower ticket prices. ($ 1 = 14,850,000 rupees) (Reporting by Bernadette Christina Munthe; Additional reporting by Tabita Diela; Writing by Gayatri Suroyo; Editing by Ed Davies and Susan Fenton)