SIA secures US$500m in US dollar debt debut

Singapore Airlines (SIA) has raised US$500 million in its first US dollar-denominated bond issue, which will go towards aircraft purchases, related payments and other general purposes including refinancing of existing borrowings.

The issuance was oversubscribed with the final demand totalling more than US$2.85 billon, anchored by high quality institutional investors including real money asset managers, SIA said in a press statement.

SIA’s issuance of first US dollar-denominated bond issue was “oversubscribed”

The bonds are being issued at an issue price of 99.573 per cent of their principal amount, with a maturity date of July 20, 2026, and will carry an annual coupon of 3.0 per cent per annum.

Citigroup was the sole global coordinator for the issuance; while Citigroup, HSBC and BofA Securities were the joint bookrunners.

SIA said the issuance further strengthens the company’s liquidity position, and provides it with the financial flexibility to capture medium- to long-term growth beyond the Covid-19 pandemic. The airline also reiterated that it “will continue to explore other means to further strengthen its liquidity as necessary”.

Since the start of the 2020/2021 financial year, including this issuance, SIA has raised approximately S$13.3 billion (US$10 billion) in additional liquidity. This includes S$8.8 billion from a rights issue, S$2 billion from secured financing, S$850 million via a convertible bond issue, as well as S$500 million via a private placement of new 10-year bonds.

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