SINGAPORE (Mar 27): Singapore Airlines (SIA), facing unprecedented stress from the Covid-19 outbreak, plans to tap shareholders to raise $15 billion so that it can stay aloft, the company announced just before midnight on March 26.

The flag carrier plans to offer all shareholders the chance to subscribe for $5.3 billion in new shares.

SIA plans to offer a three-for-two rights issue at $3 per share, which is a 53.8% discount off SIA’s last traded price of $6.50. It will also raise up to another $9.7 billion from a 10-year Mandatory Convertible Bonds (MCB). Both will be offered on a pro-rata basis via a rights issue, and both issuances will be treated as equity in the company’s balance sheet.

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