Shareholders of Indonesia’s Garuda approve $600m bond plan to tide over COVID-19

Workers clean the body of a Garuda Indonesia Airbus A320 aircraft inside Hangar 4 of PT Garuda Maintenance Facility (GMF) Aero Asia at Soekarno-Hatta airport in Jakarta.

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.

Reuters

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.