SIA's first US dollar bond issue oversubscribed by more than five times
SINGAPORE Airlines (SIA) has received very good response for its first US dollar-denominated bond issue to raise US$500 million
14 January 2021 - 19:54 - Update: 15 January 2021 - 21:32
The issuance was oversubscribed with the final demand at more than $2.85 billion, and it was anchored by high quality institutional investors including real money asset managers.
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 cent per annum.
Citigroup was the sole global coordinator for this issuance. Citigroup, HSBC and BofA Securities were the joint bookrunners.
SIA said in a statement that 'the proceeds will be used for aircraft purchases, related payments and other general purposes including refinancing of existing borrowings'.
It added: '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.'
Since the start of the 2020/2021 financial year, including this latest issuance, SIA has raised approximately SGD13.3 billion (US$10.02 billion) in additional liquidity.
Including the new lines of credit, SIA will continue to have access to more than SGD2.1 billion in committed credit lines. For the period up to July 2021, the company also retains the option to raise up to SGD6.2 billion in additional Mandatory Convertible Bonds that would provide further liquidity if necessary.
SIA's CEO Goh Choon Phong commented: 'We thank our investors for their strong support of Singapore Airlines' debut issuance of US-dollar bonds. We are confident that this will further strengthen SIA's competitive advantage in the industry, and bolster our ability to emerge stronger from the challenges posed by the Covid-19 pandemic.'
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