SIA to raise S$1bil via debt issue

SINGAPORE Airlines (SIA) has awarded DBS Group Holdings Ltd and Citigroup Inc a mandate for a S$1bil medium-term note programme, market sources said.  

“It’s a mandate for a programme up to S$1bil,” one source said. There was no immediate official confirmation. 

Facing unprecedented quarterly losses from a plunge in passenger traffic triggered by the recent SARS outbreak, SIA had said last month it planned to raise cash through a debt issue. 

The fund-raising plan for Asia’s largest airline by market value, which had shunned the debt market until two years ago, follows operating losses of S$370mil in April and May. 

And as analysts warned the losses might run into a second quarter, the 56% state-owned airline announced on Monday a second round of job cuts involving 182 cabin crew and pilots. These cuts were in addition to the 414 lay-offs made last month. – Reuters  

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