Garuda scales back loan post IPO but banks debate cause
Commercial airline Garuda Indonesia has signed a $55m loan, a big drop from the $120m it had initially aimed for. Bankers close to the deal said the facility was considerably oversubscribed and was only scaled back because the borrower needed less cash after a recent IPO — but others found this hard to believe.
Lead managers Citi and UBS approached banks with the $120m two year deal in February, while Garuda was struggling to complete its domestic listing. But the company eventually raised Rph4.75bn ($557.7m) from the share sale, reducing its need for other sources of capital.
"The loan was 150% oversubscribed [at
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