Garuda Indonesia prepares for a refinancing of two bonds of different denominations -- Rp 2 trillion and US$500 million -- in 2018.
The global bond issuance permits a maximum of US$750 million, with the proceeds to be used for refinancing of its existing bonds. The new issuance will also address any mismatch between the carrier's revenue and funding currency.
The new bond will either be tied to the 4Q 2017 financial statements or its 1Q 2018 statements, but the company must first determine current market conditions.
The targeted coupon rate range is unknown at this time, as it is pending the outcome of its planned roadshow.
Garuda Indonesia's current rupiah bonds worth Rp 2 trillion mature on 05 July 2018, and have a coupon rate of 9.25%.