SIA raises US$500mil in debut USD bond


The transaction was finalised early yesterday and the price was set at US treasuries plus 260 basis points, according to a statement from the airline.

HONG KONG: Singapore Airlines (SIA) has raised US$500mil 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 yesterday and the price was set at US treasuries plus 260 basis points, according to a statement from the airline.

The size of the 5.5 year deal was finalised after bookrunners received bids above US$2.85bil and the bond carries a 3% coupon rate, the statement 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.

Airlines are growing increasingly optimistic travel will resume later this year as a number of countries roll out vaccination campaigns to combat Covid-19. Singapore Airlines is the first major airline in Asia to tap the global debt markets in 2021, following a rush of deals in the second half of 2020. — Reuters

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