Singapore Airlines (SIA) says it has successfully raised $500 million via a private placement of new 10-year notes.
The notes, which are due 2030, will carry a coupon of 3.5% p.a. and issued in denominations of $250,000.
SIA says the offer was initially launched at $300 million and was increased to $500 million following positive reactions from a “select group of private investors”.
DBS Bank and United Overseas Bank (UOB) acted as joint lead managers of the issue.
The proceeds via the private placement will be used for general purposes including the refinancing of existing borrowings.
SEE: Singapore Airlines increases its multicurrency medium term note programme to $10 bil
“We would like to thank investors for their support for this bond issue, which follows the recent highly successful convertible bond issue. These reflect the strong confidence that investors have in the ability of Singapore Airlines to navigate the near-term challenges, and emerge as a leader in the airline industry,” says SIA’s CEO Goh Choon Phong.
Since the beginning of the FY2020/2021, SIA has raised some $12.7 billion in additional liquidity, including the $8.8 billion from its rights issue, $2 billion from secured financing, $850 million via a recent convertible bond issue and over $500 million through new committed lines of credit and a short-term unsecured loan.
Including the new lines of credit, SIA will continue to have access to over $2.1 billion in committed credit lines.
Shares in SIA closed 34 cents higher or 8.4% up at $4.41 on Nov 24.
