Garuda Indonesia will undertake a rupiah (Rp) 2 trillion ($203.5 million) bond issue, in the first phase of issuance for this year.
Indonesia's flag carrier hopes to complete the issue during the second half of the year. It will carry a five-year tenure and was given an 'A' rating by Fitch Ratings Indonesia. The airline did not say what the coupon rate for the bonds would be.
Proceeds from the issue will go towards working capital and aircraft pre-delivery payments, says Garuda's chief executive Emirsyah Satar.
Bahana Securities and Mandiri Securities will act as joint lead underwriters, while Bank CIMB Niaga will act as the trustee.
Garuda previously secured two $40 million credit facilities from state-owned Bank Rakyat Indonesia and Bank Negara Indonesia. In February, it also obtained a $70 million collateral-free loan from Bank Permata.