Flag carrier Garuda Indonesia plans to issue around US$80 million in Islamic bonds or sukuk this week, a move that will pave the way for its shares to be traded again on the Jakarta stock exchange, the company said on Tuesday (Dec 27).

Trading of Garuda’s shares has been suspended since the airline defaulted on its US$500 million sukuk in June last year amid financial difficulties caused by Covid-19-related travel curbs. Its shares last traded at 222 rupiah a piece.

Stock exchange officials said previously that Garuda’s suspension would be lifted after it issues new sukuk following a debt restructuring agreement with bond holders.

“In the next one to two days we expect to complete the requirements (to lift the suspension)... so authorities can lift it,” Garuda’s chief executive Irfan Setiaputra said in a briefing for investors.

His presentation materials showed the bonds are set to be issued on Wednesday.

Bond holders agreed to an 81 per cent haircut on the bonds during the debt restructuring talks in June.

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The stock exchange did not immediately respond to a request for comment. REUTERS