Garuda Sukuk Holders Approve the Proposal to Extend the Tenure of USD 500 Million Sukuk

Indonesia’s national airline, Garuda Indonesia (Garuda) has received approval from majority of its Sukuk holders to extend the tenure of its USD 500 million Sukuk by three years, as Garuda faces financial struggles due to the COVID-19 pandemic. 

In addition to the proposal to extend the tenure of the Sukuk, Garuda also requested Sukuk holder approval for a covenant holiday until Garuda’s operations return to pre COVID-19 levels. According to Garuda, 89% of Sukuk holders have agreed to these amendments.

Fuad Rizal, Garuda’s Finance and Risk Management Director, stated that the resolution to increase the tenure of the Sukuk will be approved at the Sukuk Holders meetin...