Garuda Indonesia Prices US$500 million 5 year Sukuk Offering with a Coupon of 5.950%

May 29, 2015 17:00 JST

Source: Garuda Indonesia Group

JAKARTA, May 29, 2015 - (ACN Newswire) - On 27 May 2015, PT Garuda Indonesia (Persero) Tbk priced a US$500 million 5 year Sukuk offering with a coupon of 5.950%. The inaugural international offering followed a comprehensive global roadshow conducted in Abu Dhabi, Dubai, Singapore, Hong Kong, Zurich and London.

Based on strong positive feedback from investors, Garuda launched the transaction at price guidance of 6.250%. The orderbooks quickly built to US$1.9bn allowing tightening of the guidance and final coupon at 5.950%.

By geography, 56% of the deal was allocated to the Middle East, followed by 32% to Asia and the remaining 12% to investors in Europe. By investor type, banks / agencies took the bulk of the offering at 52% while private banks / corporates and fund managers were allocated 29% and 19% respectively.

The offering was structured as a Wakala Sukuk based on Rights to Travel using an orphan-based SPV, Garuda Indonesia Global Sukuk Limited as the issuer. This is the first non-sovereign USD Sukuk out of Indonesia - paving the way for other Indonesian SOEs and corporates to tap this market.

Garuda's Sukuk offering was done without any government or financial institution guarantee, making it the first Asia Pacific national flag carrier to successfully issue a USD benchmark bond on a standalone basis since Qantas Airways' USD bond offering in April 2006.

This landmark offering has many firsts to its credit namely:

- First unrated USD Sukuk from an Asia Pacific issuer
- First USD Sukuk transaction from an Asia Pacific airline
- First USD Sukuk al-Wakala from an Asia Pacific corporate
- First unrated USD benchmark bond from an Asia Pacific national flag carrier

The proceeds will be used for Garuda's Shari'a compliant general corporate purposes, including the repayment of certain existing Islamic financing arrangements.

Arif Wibowo, President & CEO said, "I am delighted with the outcome of this landmark transaction for Garuda as it validates investor confidence in Garuda's role as the national flag carrier of Indonesia. This Sukuk represents a significant milestone in the continued development of the Islamic capital market for the country."

Ari Askhara, CFO and Director of Risk Management said, "The Sukuk offering has allowed Garuda to lock-in new funding at an attractive cost. Through this exercise, we have successfully re-profiled and extended maturity of our debt schedule. Leveraging the strength of potential domestic market, strong support from the shareholders, credentials of both the Board of Commissioner and Director and new risk compliance from the new management."

- This is successful story of GA rebound
- Trusts from international market after challenging situations such as financial loss and undersubscribed for the right issue in 2014.
- The deal has been supported by Banks as Joint Lead Managers, with big support from Dubai Islamic Bank, ANZ, Standard Chartered Bank, Deutsche Bank and others.

Contact:

Garuda Indonesia
Pujobroto
VP Corporate Communications
DID: +62 21 2560 1069 
Email: corpcomm@garuda-indonesia.com

Source: Garuda Indonesia Group
Sectors: Daily Finance

Latest Release

MyJCB App Wins "iF DESIGN AWARD 2025"
Apr 24, 2025 17:00 JST

MHIEC Completes Renovation of Core Facilities for Arita Municipal Recycle Plaza in Saga Prefecture
Apr 24, 2025 15:01 JST

NEC invests in U.S.-based "Geodesic Alliance Fund" aiming to strengthen economic security business
Apr 24, 2025 10:23 JST

MHI Thermal Systems Wins German Red Dot Design Award 2025
Apr 24, 2025 10:11 JST

ULVAC Develops Dilution Refrigerator for Quantum Computers
Apr 24, 2025 09:30 JST

Fujitsu expands strategic collaboration with Supermicro to offer total generative AI platform
Apr 23, 2025 11:55 JST

Furuya Metal and Asahi Kasei Embark on Demonstration Trial Regarding Recycling of Metals for Chlor-alkali Electrolysis Cells and Electrodes
Apr 23, 2025 11:00 JST

A Decade of Olympus India's Commitment to Community Welfare
Apr 22, 2025 13:00 JST

Fujitsu and RIKEN develop world-leading 256-qubit superconducting quantum computer
Apr 22, 2025 11:37 JST

Fujitsu Kozuchi AI technologies assist AKOS AI in delivering solutions for EU AI compliance
Apr 18, 2025 17:41 JST

Leqembi (lecanemab) is the First Medicine that Slows Progression of Early Alzheimer's Disease to be Authorized in the European Union
Apr 18, 2025 16:52 JST

Hitachi Industrial Equipment Systems Launches Next-Generation Inverter System to Support Stable, Resilient Power Grids
Apr 18, 2025 16:46 JST

MHIEC Receives Order from the Bureau of Sewerage of the Tokyo Metropolitan Government for Rebuilding of Sewage Sludge Incineration Facility
Apr 17, 2025 14:44 JST

Fujitsu collaboration with Supermicro and Nidec to reduce data center energy consumption
Apr 17, 2025 10:32 JST

Fujitsu's Japanese language enhanced LLM Takane offering now available on Nutanix Enterprise AI solution
Apr 16, 2025 11:24 JST

Isuzu and Fujitsu sign partnership agreement to commercialize software defined vehicles
Apr 15, 2025 12:29 JST

MHI Awarded a Study on CO2 Capture Modules for FPSOs
Apr 15, 2025 10:46 JST

Mitsubishi Motors Begins Shipping Xforce HEV Model in Thailand
Apr 11, 2025 15:03 JST

Collaboration to Make Engine-Equipped Vehicles Carbon Neutral Using Synthetic Fuel
Apr 11, 2025 14:03 JST

TGR to Launch Evolved GR Yaris
Apr 11, 2025 13:35 JST

More Latest Release >>

Latest Release

Related Release