(Corrects to say loan to be issued by a Maybank unit, not
Maybank Islamic Bhd)
KUALA LUMPUR May 6 Indonesian airline Garuda
Indonesia Tbk has secured $100 million in financing
from a unit of Malaysia's Maybank to fund its
operations and expansion, the Malaysian bank said on Tuesday.
The Musyarakah-based loan, which will be Indonesia's largest
bilateral Islamic financing, has a tenure of three years and
will be issued through Maybank's Indonesian unit, PT Bank
Internasional Indonesia Tbk, Maybank said in a
"The partnership in financing demonstrates BII's continuous
support for Garuda Indonesia as we are growing our business,"
said Garuda's Chief Executive Officer Emirsyah Satar.
"We are honored that this is the first and only Islamic
financing done between a bank and an airline in Indonesia", he
Garuda Indonesia posted a net loss of $163.9 million in its
first quarter ended March, compared with a loss of $33.75
million in the same period a year earlier, as the airline
continued to struggle with rising competition.
($1 = 3.2505 Malaysian ringgit)
(Reporting By Anuradha Raghu; Editing by Louise Heavens)