After the Dana Gas Sukuk leak, another Sukuk announced turbulence when Indonesian national airline Garuda Indonesia announced its $500 million sukuk issued in 2015 may need to make an emergency landing.
The Indonesian flag carrier is seeking to amend a number of conditions as below:
Garuda recorded a net loss of $283.8 million in the first half of the year, attributable to a $138.3 million loss due to tax amnesty programme expense, and $145.5 million to losses from operations. Net losses from operations amounted to $145.5 million for the six months.
Sukuk holders who vote in favour will receive a participation fee of 0.6% of the outstanding principal amount of their certificates. A shareholder meeting is scheduled for 18 August in Hong Kong.
The Wakala Sukuk issued in 2015 for $500 million achieved an order book of US$1.9bn and was issued at a profit rate of 5.950%. The sukuk was issued for a duration of 5 years.
Full details of Garuda can be found at: Garuda Consent Solicitation.