Singapore Airlines (SIA) has successfully raised US$500 million via its first US dollar-denominated bond issue. The issuance was oversubscribed with the final demand at more than US$2.85 billon, and it was anchored by high quality institutional investors including real money asset managers. The bonds are being issued at an issue price of 99.573% of their principal amount, with a maturity date of 20 July 2026, and will carry an annual coupon of 3 percent per cent per annum. Citigroup was the sole global coordinator for this issuance. Citigroup, HSBC and BofA Securities were the joint bookrunners.
The proceeds will be used for aircraft purchases, related payments and other general purposes including refinancing of existing borrowings. The issuance further strengthens the company’s liquidity position, and provides SIA with the financial flexibility to capture medium-to-long term growth beyond the COVID-19 pandemic.
As previously indicated, SIA will continue to explore other means to further strengthen its liquidity as necessary. Since the start of the 2020/2021 financial year, including the latest issuance, Singapore Airlines has raised approximately S$13.3 billion (US$10 billion) in additional liquidity. This includes S$8.8 billion from SIA’s successful rights Issue, S$2 billion from secured financing, S$850 million via a recent convertible bond issue, another S$500 million via a private placement of new 10-year bonds, and more than S$500 million through new committed lines of credit and a short-term unsecured loan.
Including the new lines of credit, SIA will continue to have access to more than S$2.1 billion in committed credit lines. For the period up to July 2021, the company also retains the option to raise up to S$6.2 billion in additional Mandatory Convertible Bonds that would provide further liquidity if necessary.
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