Garuda Indonesia secures $200m loan

Singapore
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Garuda Indonesia has secured a $200 million loan from several banks to fund its expansion plans.

The flag carrier will use the money for aircraft pre-delivery payments and for working capital, says its finance director Handrito Hardjono.

It will withdraw the loan in two tranches - the first $75 million in September, followed by the remaining $125 million in October.

Hardjono adds that the carrier is also planning to raise another $300 million in 2013.

These funds will also go toward aircraft pre-delivery payments and working capital.

This loan could be secured through several options including issuing bonds and bank loans, says Hardjono.

Garuda has said that it targets to grow its fleet to 194 aircraft by 2015. This year, it will take delivery of 21 aircraft as part of its fleet expansion and renewal plan.