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Bond Market News
Garuda Indonesia Seeks Cash Injection from Nation’s SWF Danantara
October 9, 2025
PT Garuda Indonesia expects to raise as much as $1.44bn in cash from the nation’s sovereign wealth fund, Danantara. Garuda plans to seek shareholder approval for the cash injection on November 12, with financial help from PT Danantara Asset Management, an arm of Danantara, via a private placement. The planned private placement “takes into account the urgency of improving the company’s financial position, and the urgent need for funding to maintain the continuity of the business and operations”, according to Bloomberg.
It also reached a deal to convert a $405mn loan from Danantara, which is also the airline’s majority shareholder, into additional shares as per sources. Danantara earlier appointed a new Garuda CEO and a finance director. The new management plans to expand its international network and buy as many as 75 Boeing aircrafts. Garuda has struggled financially since the Covid-19 pandemic that effectively halted air travel. Its net loss widened 41% YoY to $143.7mn in 1H2025.
Garuda’s 6.5% 2031s have traded higher by nearly 10 points since beginning of October, and now trade at 92.43 cents on the dollar yielding 8.06%.
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