Flag carrier PT Garuda Indonesia won shareholders’ approval on Friday for the sale of convertible bonds to a maximum amount of 8.5 trillion rupiah ($599.86 million), its chief executive said, to help ride out the coronavirus pandemic.
Indonesia’s finance ministry will buy the seven-year bonds through state investment firm PT Sarana Multi Infrastruktur.
“We also hope these bonds can encourage faster recovery in the aviation industry, which, in turn, can help national economic recovery,” Chief Executive Irfan Setiaputra told an online news briefing.
In remarks made after a shareholders’ meeting, he added that the bond sale proceeds would go to support the airline’s liquidity and solvency as well as operational expenses.
Garuda’s finances suffered from virus curbs that halted most of the global aviation industry as governments scrambled to stop spread of the disease.
Garuda posted net losses of $1.07 billion in the period from January to September, unaudited financial results show, swinging from a profit of $122.42 million a year earlier.
The company hopes the funds raised from the bonds would flow in before the end of the year, Irfan added.