Debt restructuring: A new chapter for GIAA & KRAS
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Restrukturisasi utang: Babak baru GIAA & KRAS
2 January 2022
Jakarta - Two state-owned issuers, PT Garuda Indonesia (Persero) Tbk (GIAA) and PT Krakatau Steel (Persero) Tbk (KRAS), are travelling through a long road to recover their finances through debt restructuring. Slowly, that step is starting to bear fruit and open growth space in 2023.
Garuda Indonesia President Director Irfan Setiaputra reported that the company’s debt restructuring process that was carried out gradually had been completed. GIAA has received state equity participation (PMN) worth Rp7.5 trillion from the government and public investors from the rights issue that issued 39.78 billion new shares worth Rp7.79 trillion.
That stage is followed by a private placement for 25.8 billion shares worth Rp5.05 trillion, which includes the realisation of mandatory convertibles.
“With the distribution of new shares, GIAA’s shares ownership composition is currently 64.54% owned by the government, 7.99% by Trans Airways, 4.83% by the public, and 22.63% by creditors,” Irfan explained.
GIAA has also issued new sukuk worth US$78.01 million with a tenor of 9 years and new bonds for creditors classified as lessors, finance lease creditors, aircraft manufacturers, MRO vendors, and foreign creditors with a principal of US$624.21 million.
On a separate occasion, Krakatau Steel President Director Silmy Karim said that KRAS was asking to extend the debt repayment period of Tranche B from 2022 to the end of 2023. “So, we, the management, is optimistic about repaying Tranche B worth US$524 million by 2023,” he said.
He mentioned that funds to repay KRAS’ debt would come from various sources, US$120 million from internal and US$200 million from the divestment of three subsidiaries that are Krakatau Daya Listrik (KDL) that contributes 70%, Krakatau Tirta Industri (KTI) 49%, and Krakatau Bandar Samudera 49%.
Then, asset securitisation will contribute US$70 million, cash lap US$100 million, and the rest from internal cash.
