KUALA LUMPUR, May 6 (Reuters) - Indonesian airline Garuda Indonesia Tbk has secured $100 million in financing from Maybank Islamic Bhd 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 3 years and will be issued through Maybank’s Indonesian unit, PT Bank Internasional Indonesia Tbk, Maybank said in a statement.
“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 added.
Maybank Islamic is the largest Islamic bank in Southeast Asia, and is a unit of Malaysia’s Malayan Banking Bhd.
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