The issuance was oversubscribed with the final demand at more than US$2.85b.
Singapore Airlines raised US$500m ($663.6m) in its first US dollar-denominated bond issue.
The bonds were issued at an issue price of 99.573% of their principal amount and with a maturity date of 20 July 2026. The bonds would carry an annual coupon of 3.0% percent 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.
Since the start of the FY20/21 including this issuance, Singapore Airlines has approximately raised $13.3b in additional liquidity. This includes $8.8b from SIA’s successful Rights Issue, $2b from secured financing, $850m via a recent convertible bond issue, another $500m via a private placement of new 10-year bonds, and more than $500m through new committed lines of credit and a short-term unsecured loan.
According to SIA, it will have access to more than $2.1b in committed credit lines. For the period up to July 2021, it will also retain the option to raise up to $6.2b in additional mandatory convertible bonds that would provide further liquidity if necessary.
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