Monday, June 1st, 2015 - Garuda Indonesia

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.

About PT Garuda Indonesia (Persero) Tbk.

Presenting a new level of service excellence in air travel, Garuda Indonesia, the national airline of Indonesia, seamlessly connects more than 70 destinations worldwide to not only one of the largest economies in Southeast Asia, but also an array of exotic locations in the beautiful archipelago of Indonesia all at once. With close to 600 daily flights and a fleet of around 160 aircraft (the average age of which is less than five years old), Garuda Indonesia proudly serves its passengers with the award-winning "Garuda Indonesia Experience" service, which highlights Indonesia's warm hospitality and rich diverse culture.

The airline continuously strives, through its ongoing transformation program, to provide better and more convenient services with one of the youngest fleets in the sky, which should grow to around 194 aircraft by 2015. The progress of Garuda Indonesia's transformation program can be seen from achieving a Skytrax airline ranking as the 7th best airline in the world in the 2014, as well as winning the prestigious "The World's Best Cabin Crew" award in 2014 and "The World's Best Economy Class" award in 2013, also from Skytrax. Garuda Indonesia is a member of SkyTeam, the global airline alliance with 20 members, providing access to an extensive global network with over 15,700 daily flights to 1,052 destinations in 177 countries.

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Garuda Indonesia
VP Corporate Communications
DID: +62 21 2560 1069
Email: [email protected]

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