"The funds will be used to support Garuda`s `Quantum Leap` business plan especially for the procurement of aircraft until 2015," the company`s president director, Emirsyah Satar, told newsmen here on Friday on the sidelines of a Garuda Loan Club gathering.
Emirsyah admitted that he had actually been offered up to US$120 million loan but he had refused it because the real need was only that much (US$55 million).
"Garuda indeed needs a quite large capital in the future, as that is the characteristic of airline business," he said.
The expansion itself, he said, could not be avoided because the market and domestic air transportation had continued to grow in the past five years.
"The annual growth is no less than 14 to 15 percent," he said.
The executive director of UBS Bank, Agung Prabowo, meanwhile said the loan had a two-year tenure with a competitive interest.
"Our syndication includes Citibank, BCA, UBS, BII, Permata Bank, Bank of China and ICBC," he said.
Tigor MS from Citibank meanwhile said that initially the syndication was ready to provide funds up to US$120 million but "Garuda wants to adjust it with its real needs. But seeing the business prospects we are ready to increase it anytime."
(Uu.E008/H-YH/HAJM/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2011
