TEMPO.CO, Jakarta - State-owned airline Garuda Indonesia (IDX: GIAA) has canceled its plan to issue Islamic bonds (sukuk) worth US$900 million, or around Rp1.25 trillion. Management cited unfinished audit as the reason.
Garuda Indonesia finance and risk management director said that the company's financial statements had not finished audit by the time of the airline's shareholders' general meeting, Bisnis Indonesia reported.
"To date, the audit process is still not completed, whereas one of the conditions for issuing sukuk is to have a financial audit report with a validity of less than six months," Fuad said here on Thursday, January 23.
Garuda had planned to issue global sukuks and other financial instruments to secure financing. Had the Islamic bond been issued, the proceeds would be allocated to refinance the flagship carrier's short term debts.
As of September 2019, GIAA had US$1.6 billion debts in total.