Garuda settles its bonds worth Rp2 trillion

Jakarta, (ANTARA News) – National flag carrier Garuda Indonesia settled its rupiah-denominated bonds worth Rp2 trillion on Wednesday.

The settlement of the bonds constituted Garudas commitment to meet its obligations in the form of debt securities, Garuda Indonesia President Director Pahala N Mansury said in a press statement released on Thursday.

“In line with its improved performance, Garuda Indonesia will always meet its obligation on time and fulfill all of its commitments to investors,” he said.

The five-year bonds due in 2018 were issued at a coupon of 9.25 percent per year which was paid every three months.

The company issued the bonds worth Rp2 trillion in 2013 as part of its corporate action to implement its expansion program and rejuvenate its fleet.

Nearly 80 percent of proceeds from the issuance of the bonds was used as down payment for the purchase of planes and 20 percent was used as capital for the payment of aircraft rents.

Garuda Indonesia managed to keep down its losses by up to 36.5 percent to US$64.3 million or Rp868 billion in the first quarter of 2018 thanks to its improved financial performance, he said.

The company also saw a 7.9 percent increase in its operating income to US$983 million or Rp13.27 trillion in the first quarter of 2018 compared US$910.7 million in the same period last year.

Source: ANTARA News