JAKARTA. PT Garuda Indonesia (Persero) Tbk (GIAA) has officially issued a mandatory convertible bond (MCB) with a maximum value of Rp 8.5 trillion with an availability period until 2027. The issuance is part of the government's support for the airline through the National Economic Recovery programme.
Per an agreement between the airline's stakeholders, Rp 1 trillion of the MCB will be disbursed with a tenor of three years following the signing of an issuance agreement between Garuda and PT Sarana Multi Infrastruktur (SMI), which was appointed by the Ministry of Finance as an investment executor, on Monday (28/12).
According to Garuda CEO Irfan Setiaputra, the MCB marked a positive start in the airline's effort towards performance recovery. "The issuance of this MCB is an important momentum for the company at the end of 2020 in order to build optimism regarding its performance outlook in 2021," he said in a press release on Monday.
Mr Setiaputra said he remains optimistic that the airline's performance will be more dynamic in answering challenges posed by the aviation industry in line with its strategic effort to impove its fundamental performance such as aircraft lease renegotiation, financial relaxation, production efficiency, and network restructuring.
The funds from the corporate action, Mr Setiaputra said, will be used to support the airline's liquidity, solvability, and operational financing. (AM/MS)