ANNOUNCEMENT 15 Jul 2020
In July 2020, Indonesia announced to provide a capital injection of IDR 8.5 T (USD 583 million) to Garuda Indonesia to support its operationd during the COVID-19 pandemic.
NUMBER OF INTERVENTIONS
[Jakarta Post, "House approves of 8.5T convertible bond for ailing Garuda", published on 16 July 2020, retrieved on 23 October 2020, in English]: https://www.thejakartapost.com/news/2020/07/16/house-approves-rp-8-5t-in-convertible-bond-for-ailing-garuda.html
[CNN Indonesia, "Garuda Beberkan Penggunaan Dana Talangan Rp8,5 Triliun", published on 15 July 2020, retrieved on 23 October 2020, in Bahasa Indonesia]:https://www.cnnindonesia.com/ekonomi/20200714172903-92-524628/garuda-beberkan-penggunaan-dana-talangan-rp85-triliun
On 15 July 2020, Indonesia announced a capital injection of IDR 8.5 trillion (USD 583 million) into Garuda Indonesia in the form of a mandatory convertible bond (MCB). The MCB will require conversion of the said bond into stocks in accordance with the contractual conversion date. Garuda Indonesia is Indonesia's state-owned airline.
The MCB for the airline is expected to have a tenor of three years, with state-owned infrastructure financing company PT Sarana Multi Infrastruktur projected to act as a buyer for the bond and eventually a shareholder of the company. The capital injection received will be used to fund the operation of Garuda Indonesia which was impacted by the COVID-19 pandemic.
The announcement of capital injection was made on 15 July 2020.
* IDR to USD conversion as on 15 July 2020 - IDR 14583.07/USD