Singapore Airlines prices US$600M bond issue

Singapore Airlines plane on the ground at Singapore’s Changi Airport; taken November 2018.Singapore Airlines plane Changi Airport.

Singapore Airlines (SIA) has priced US$600 million in notes due 2029 at 3.375 percent to fund aircraft-related expenses, the Singapore flag-carrier said in a filing to SGX Thursday. 

The notes, which will be at an issue price of 99.273 percent of the principal amount, is earmarked for aircraft purchases and aircraft-related payments, and general corporate or working capital purposes, including refinancing existing borrowings, SIA said. 

The offering is series 10 under the carrier’s S$10 billion multicurrency medium-term note program, the filing said. The notes will be in denomination of US$200,000, the filing said. 

The issuance date is expected to be 19 January, SIA said.

The joint global coordinators are Citigroup Global Markets Singapore and DBS Bank, and the joint lead managers are Citigroup, DBS, Standard Chartered Bank (Singapore) and BNP Paribas, SIA said.

In September 2021, SIA said it tapped the last S$600 million of the proceeds of S$8.8 billion it raised in a 2020 rights issue to be used for aircraft and aircraft-related payments. In June 2021, Singapore Airlines had completed another rights issue, raising S$6.2 billion in additional liquidity.

As of September 2021, the carrier had raised a total of S$21.6 billion in fresh liquidity since 1 April 2020, and had access to S$2.1 billion of committed lines of credit. 

Airlines globally have been badly hit by travel restrictions to stem the spread of the Covid-19 pandemic. Singapore Airlines has faced an additional headwind as it lacks domestic flights, which have supported many of its competitors. But the airline has begun to add back capacity.

 

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