Singapore Airlines said on Tuesday it would offer S$500 million of bonds due 2024 at 3.03 percent to retail investors in Singapore and institutional and accredited investors.
Of the total, S$300 million will be offered to retail investors in Singapore, while the remainder will be offered under placement to institutional and accredited investors, the carrier said in a filing to SGX after the market close on Tuesday.
The offer also has an upsize option which could increase the issuance to up to S$750 million if the public offer and/or the placement is oversubscribed, the filing said.
The net proceeds will be used for aircraft purchases and for aircraft-related payments, Singapore Airlines said.
The bonds will be issued in denominations of S$1,000 each, with the issuance date on or around 28 March, the carrier said.
Retail investors can apply for the bonds at any ATM of DBS Bank, including POSB, OCBC Bank or UOB, or on their internet or mobile banking sites, it said; the bonds aren’t eligible for CPF or SRS Funds.
The opening date for applications under the public offer is Wednesday, while the last date for applications is 26 March, it said.
The bonds will be issued under Singapore Airlines’ S$2 billion medium term bond program, the filing said.
DBS Bank, OCBC Bank and UOB are the joint lead managers and bookrunners and they will fully underwrite the offer, the filing said.