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Garuda Indonesia Kicks Off Global Roadshow For Global Sukuk Bond.


Garuda Indonesia, the national airline of Indonesia, announced that it would begin the roadshow for its forthcoming Global Sukuk Bond on 19 May 2015, having secured an approval for the issuance of the US$ 500 million worth of bonds at the Extraordinary General Shareholder’s Meeting conducted in Jakarta, Indonesia, on 15 May 2014.

The Global Sukuk bond roadshow will kick off in Abu Dhabi and Dubai on 19 May 2015 and will move to Hong Kong on 20 May 2015 before transferring to Singapore on 21 May 2015, Zurich on 22 May 2015 and London on 26 May 2015.

Garuda Indonesia has mandated National Bank of Abu Dhabi PJSC (“NBAD”, the “Sole Global Coordinator”), Dubai Islamic Bank PJSC (together with NBAD the “Joint Structuring Banks”), Al Hilal Bank PJSC, Australia and New Zealand Banking Group Limited, Deutsche Bank AG Singapore Branch, Emirates NBD Capital Limited, First Gulf Bank PJSC, Maybank Investment Bank Berhad, Noor Bank PJSC, QInvest LLC, Standard Chartered Bank, Warba Bank (together with the Joint Structuring Banks, the “Joint Lead Managers” and “Joint Bookrunners”), PT BNI Securities, PT Trimegah Securities Tbk and PT Mega Capital Indonesia (jointly, the “Co-Managers”) to arrange a series of fixed income investor meetings during the roadshow.

The issuance of the Islamic Bonds would be the first global issuance of such bonds by Indonesian company and is part of the company’s plans to reprofile its maturing debt in 2015 and 2016 by extending the due date to 5 years.

Garuda Indonesia under the new management that was appointed on December 2014 introduced the short-term “Quick Wins” program to rebound amidst turbulent times for the global aviation industry, with the following main strategies:

  • Increase “Revenue Generator”, in which all potentials that may increase the company’s revenue are optimized.
  • Restructure “Cost Driver”, in which Garuda will manage and restructure costs to increase efficiency,
  • Reprofiling activities, especially of all commercial financing facilities, by extending the due date of its credits, relaxing various terms and increasing the company’s positive cash flow.

In line with the implementation of its Quick Wins program, Garuda Indonesia posted positive growth throughout the first quarter of 2015. The airline booked US$12.4 million in net profit in the January-March period this year, an increase of 107.5 percent compared to 2014’s US$ 166.2 million loss. Garuda Indonesia posted an operating revenue of US$927.3 million, growth of up to 13.4 percent compared to the same period in 2014, which was US$ 817.4 million.



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