Garuda Indonesia (GA, Jakarta Soekarno-Hatta) has secured shareholder approval to issue seven-year convertible bonds with a maximum amount of IDR8.5 trillion rupiah (USD600 million), with Indonesia’s finance ministry stepping up to buy them as part of a government rescue for the ailing flag carrier, the company announced in a stock exchange filing.
The ministry will acquire the bonds via its “special mission vehicle” Sarana Multi Infrastruktur (Persero), a state-owned investment company that finances infrastructure projects. They will be mandatory convertible bonds, meaning that they will be converted into stocks once the seven years are up...more
