ICBC provides $60 million credit line to PT Garuda Indonesia (Persero) for working capital needs

On November 14, 2013, PT Garuda Indonesia (Persero) obtained a credit facility in the form of Domestic Letter of Credit (“SKBDN”) and the Omnibus Sight/Usance/Usance Payable at Sight (UPAS) Letter of Credit (L/C) including Standby Letter of Credit Line (SBLC) from Industrial and Commercial Bank of China (ICBC). SKBDN and UPAS have a maximum tenor of 90 days and the SBLC has a maximum tenor of 12 months. The combined limit of the facility is US $20,000,000. The purpose of this facility is for working capital needs. Then, on the same day, PT Garuda Indonesia (Persero) obtained the ICBC facility (the “ICBC Facility”) in the form of an Omnibus Sight/Usance, Usance Payable at Sight (UPAS) L/C, SKBDN & SBLC line from ICBC with a maximum credit amount of US $40,000,000 pursuant to the other SKBDN & SBLC line Credit facility, as amended by an Amendment Agreement No. 12 dated February 11, 2015. The final maturity date of the ICBC Facility is 14 November 2015 and it is unsecured. Unless Garuda obtains ICBC’s prior written consent, the ICBC Facility prohibits Garuda from conducting mergers, demergers or consolidations with another company or acquisitions, creating or permitting to subsist any encumbrance (other than permitted encumbrances), lending to any party (other than permitted lending) and disposing of any asset (other than permitted disposal), and changing the business activities and legal status of Garuda. The ICBC Facility also requires Garuda to notify ICBC of any change of its articles of association and its Board of Directors and Board of Commissioners. Garuda is also required to maintain its debt-to-equity ratio at a maximum of 2.5x. Total outstanding bank loans as of March 31, 2015, and December 31, 2014, amounted to US $32,495,204 and USD$12,450,164, respectively.

Number of official sources

1

Number of total sources

1