JAKARTA -- Shareholders of Garuda Indonesia, the country's flagship carrier, on Friday approved the issuance of bonds to a maximum amount of 8.5 trillion rupiah ($600 million) in a bid to save the company, badly struggling from the coronavirus pandemic.
The issuance is part of the government's rescue plan for the airline. The bonds will be purchased by the Finance Ministry through Sarana Multi Infrastruktur, a state-owned investment firm for financing and preparing infrastructure projects. The bonds will be mandatory convertible bonds with a tenure of seven years, meaning that after that period, they will be converted to stocks.
