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Jakarta Post

Garuda, Krakatau Steel receive state injections through MCB issuances

  • Eisya A. Eloksari

    The Jakarta Post

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Jakarta   /   Tue, December 29, 2020   /  03:08 pm
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An airplane of Indonesia's national carrier Garuda lands on a runway beside a paddy field at Blang Bintang airport in Banda Aceh on April 2, 2019. (AFP/Chaideer Mahyuddin)

National flag carrier Garuda Indonesia and state-owned steelmaker PT Krakatau Steel issued on Monday mandatory convertible bonds (MCB) worth trillions of rupiah as a means to receive a state capital injection to weather the economic downturn caused by the coronavirus outbreak. The MCB agreements were signed separately by the companies with state-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI), which is appointed to carry out such investments allocated in the government's national economic recovery program. Garuda issued Rp 1 trillion (US$70.6 million) in MCBs with a three-year tenure from a total of Rp 8.5 trillion worth of planned MCBs in a span of seven years to improve the company’s liquidity, solvability and to cover operational costs. The remaining Rp 7.5 trillion will be issued gradually, said Garuda Indonesia president director Irfan Seti...