Garuda Secures $400m Bridge Financing From UAE Banks
FEBRUARY 24, 2015
Jakarta. Garuda Indonesia, the country's flag carrier, secured $400 million in bridge financing from National Bank of Abu Dhabi and Dubai Islamic Bank, both from the United Arab Emirates.
The loan would provide immediate cash flow to Garuda before the airline issues a $500 million global sukuk later this year, said finance director I Gusti Ngurah Askhara Danadiputra on Monday. The bridge loan would be due in one year, Askhara said, without disclosing the interest rate.
Garuda plans to use the proceeds from the global sukuk sale to pay a $350 million loan that is due by the end of this year, and a $135 million loan due by March 2016.
The bridge loan also acts as backstop loan, or last-resort financing, should Garuda’s sukuk fail to sell, Askhara said.