Garuda is Evaluating Three Options for the Settlement of USD 498.99 Million Sukuk

PT Garuda Indonesia (Garuda) is exploring three alternatives for the settlement of its USD 498.99 million Sukuk. The alternatives proposed are full redemption, extension of maturity and payment with a discounted Sukuk price, according to Garuda Indonesia’s President Director (PD), Irfan Sebuahutra. According to the IslamicMarkets Sukuk Monitor, Garuda’s Sukuk is due to mature on the 3rd of June 2020.

The PD added that these three options are being discussed with the shareholders of Garuda (primarily the Government of Indonesia), and the shareholders have been made aware of the financial as well as reputational consequences the company could face in the event of choosing settlement options such as extension of maturity and...