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GARUDA INDONESIA - JAKARTA. Airline Garuda Indonesia will receive a $1.4 billion capital injection from the asset management unit of sovereign wealth fund Danantara Indonesia, the company said on Tuesday, a reduction of about $400 million from what it disclosed previously.
Last month, Indonesia's flag carrier disclosed that the Danantara unit would provide an injection of about $1.8 billion in cash and the wealth fund's loans would convert into equity.
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But in a Tuesday filing, Garuda said the injection, via a private placement, would amount to around 23.67 trillion rupiah ($1.43 billion).
The injection will be used to pay for fleet maintenance and a funding increase for Garuda's low-cost carrier, Citilink.
"There is also an adjustment to the planned use of funds, which no longer includes fleet expansion," Garuda said in an earlier filing, explaining the reduction.
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Danantara Indonesia did not immediately respond to a request for comment.
Garuda Indonesia's finances have been strained since the COVID-19 pandemic, forcing the airline to restructure its debt. ($1 = 16,570.0000 rupiah) (Reporting by Stanley Widianto; Editing by Thomas Derpinghaus)
