Clifford Chance

Clifford Chance acted for the Committee of Certificateholders (the "Committee") in relation to an exercise to restructure Garuda Indonesia Global Sukuk Limited's US$500 million Sukuk

Leading international law firm Clifford Chance has acted for an ad hoc Committee of Certificate holders (the Committee) on the international aspects of the restructuring of Garuda Indonesia's USD$500 million sukuk, due in June 2020.

Publicly listed national flag carrier Garuda Indonesia, like many other airlines is facing a challenging ongoing operating environment, due to the impact of COVID-19.

Garuda Indonesia first issued a global sukuk on 3 June 2015, with a five-year tenure and an annual return of 5.95 percent which was scheduled for repayment on 3 June 2020. The restructuring was concluded in a condensed time frame to avoid any default and includes an extension of the Scheduled Dissolution Date of the Sukuk by three years until 3 June 2023, and the waiver and suspension of certain covenants for a specified period.

The principal amendments were negotiated and agreed between the Committee and Garuda Indonesia and were approved by the required number of Certificate holders and effective 12 June 2020.

Global Head of Islamic Finance and partner Qudeer Latif led a cross-practice and cross-border team in the United Arab Emirates, Hong Kong and Singapore, with partner Gareth Deiner (Singapore) advising on the capital markets aspects of the deal, and partners Scott Bache (Hong Kong) and Shaun Langhorne (Singapore) advising on the restructuring aspects of the deal. The Clifford Chance team also included counsel Nicola Reader (Abu Dhabi), senior associates Clara Gold (Dubai) and Phoebe Lo (Hong Kong), and associate Anthony Matsis (Dubai).

Commenting on the restructure Qudeer said, ''We are pleased to have advised on the restructuring of Garuda Indonesia's sukuk and support our clients and Garuda during these challenging economic times due to COVID-19. No business is immune to its impact, and this restructuring will allow the company to consolidate its financial position and to move forward confidently.''

Clifford Chance had advised on the international aspects of Garuda Indonesia's US$500 million sukuk issuance in 2015, which was the first ever offshore US dollar offering by an Indonesian corporate issuer.