Indonesia’s Garuda Sukuk Likely to Face a Restructure

Indonesia’s national carrier Garuda Indonesia (Garuda) and Indonesia’s State-Owned Enterprises (SOE) Ministry have held discussions to restructure Garuda’s Sukuk maturing in June 2020.

According to the IslamicMarkets Sukuk Monitor, in June 2015, Garuda issued a USD 500 million, five-year global Sukuk with an annual return of 5.95%, which is due to mature in June 2020.

Erick Thohir, Minister of SOE, said that SOEs have been discussing the restructuring with Garuda for over a month and stated that Garuda has been severely impacted by flight cancellations to Saudi Arabia and Australia, key markets for the airline.

Irfan Setiaputr...