Singapore Airlines raises US$500 million in US dollar debt debut - CNA

SINGAPORE: Singapore Airlines (SIA) has raised US$500 million (S$660 million) in its first US dollar bond issue, which the company will use to buy new aircraft as the global aviation industry prepares for a post-pandemic travel rebound.

The transaction was finalised early on Thursday (Jan 14) and the price was set at US treasuries plus 260 basis points, according to a term sheet seen by Reuters.

The size of the five-and-a-half-year deal was finalised after bookrunners received bids above US$1.5 billion, and the bond carries a 3 per cent coupon rate, the term sheet shows.

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SIA said the issuance was oversubscribed with the final demand at more than US$2.85 billion, and it was anchored by “high-quality institutional investors”.

The proceeds will be used for aircraft purchases, related payments and other general purposes including refinancing of existing borrowings, the airline said. 

“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,” it said.

Since the start of the 2020/2021 financial year, including Thursday’s issuance, Singapore Airlines has raised about S$13.3 billion in additional liquidity. This includes S$8.8 billion from