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Warba Bank successfully leads USD 500 Million Sukuk issuance by Garuda Indonesia

14-Jun-2015 The flag carrier for Indonesia Garuda Indonesia Prices US$500 million 5 year Sukuk Offering with a Coupon of 5.950% Kuwait - Warba Bank was mandated by Garuda Indonesia, the leading Indonesian's flagship carrier as Joint Lead Manager and Joint Book Runner for its inaugural international Sukuk issue. The international offering followed a comprehensive global roadshow conducted in Abu Dhabi, Dubai, Singapore, Hong Kong, Zurich and London.

On 27 May 2015, PT Garuda Indonesia (Persero) Tbk priced a US$500 million 5 year Sukuk offering with a coupon of 5.950%. Subscription diversified by geography, 56% of the deal was allocated to the Middle East, followed by 32% to Asia and the remaining 12% to investors in Europe. By investor type, banks / agencies took the bulk of the offering at 52% while private banks / corporates and fund managers were allocated 29% and 19% respectively. Participation in this offering far exceeded all expectations with coverage of 350% amounting about US$1.8 billion.

Due to its strong track record in corporate financing and its distinguished business relationship with Garuda, Warba Bank has been selected by Garuda Indonesia to be the Lead Manager and Joint Book Runner, to help enhance the carrier's presence in key international markets and assess stakeholder interest in a potential Sukuk issue.

The offering has been structured as a Wakala Sukuk based on rights of asset travel using Special Purpose Vehicle "SPV", Garuda Indonesia Global Sukuk Limited will act the issuer. This is the first non-sovereign USD Sukuk out of Indonesia - paving the way for other Indonesian SOEs and corporates to tap this market.

Mr. Shaheen Hamad Al Ghanim, Warba Bank Deputy CEO - Investment & Treasury &, said: "To be lead manager of Garuda Indonesia's inaugural Sukuk issuance is an important milestone for Warba Bank and is testimony to our competence in handling such an important and unique deals. The Sukuk, which is Indonesia's first corporate global Sukuk issuance, further demonstrates the global demand for Islamic Finance products. Our activity in corporate finance complements Warba Bank's ever expanding retail banking offering and together is a key driver in our strategy to achieve sustainable growth.

Al Ghanim added; "It reaffirms the Bank's proven strategy of seizing promising opportunities in major markets and selecting the right partners to conclude successful and lucrative deals. Garuda Indonesia's successful Sukuk issuance will further reinforce Warba Bank's capability for competition and contribution towards the development of the global Islamic economy."

Warba Bank excels in providing corporate financing services in key markets, and will continue to do so by leading, securing and executing innovative Sharia-compliant investments which attain strong returns in both short and long term.

Garuda is a leading company in Southeast Asia, one of the largest operating companies in emerging and promising countries. Jeddah Airport in Saudi Arabia considered the most important destination for the Company in light of the fact that Indonesia is the largest Muslim country in the world.