SIA gets fresh financing

Singapore Airlines (SIA) has successfully raised S$500 million (US$372.4 million) via a private placement of new 10-year bonds, which will be used for general purposes including refinancing of existing borrowings.

The offer was launched at an offer size of S$300 million in response to an initial expression of interest, and was increased to S$500 million after strong appetite was apparent from a select group of private investors.

Latest round of financing will strengthen SIA’s liquidity

DBS Bank and United Overseas Bank acted as joint lead managers of the issue.

SIA CEO Goh Choon Phong said the support for the bond issue reflected “strong confidence that investors have in the ability of Singapore Airlines to navigate the near-term challenges”.

Since the start of the 2020/2021 financial year, including the November 24 issuance, SIA has raised approximately S$12.7 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, and more than S$500 million through new committed lines of credit and a short-term unsecured loan.

For the period up to July 2021, SIA 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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