SIA’s fund-raising plan is ‘gold standard’: Goldman Sachs

Goldman Sachs deems SIA’s plans to raise up to S$15b (US$10m) the “gold standard” among coronavirus-related rescue packages for airlines. “We view that as really the gold standard for the packages that have been put in place,” Nicola Dondi, MD at Goldman Sachs (Asia), said April 17. The plan is backed by SIA’s largest shareholder Temasek Holdings and Dondi says: “It’s a comprehensive package. It’s very large in quantum. It gives SIA a lot of additional liquidity and it’s obviously led by a blue-chip shareholder that was already a shareholder in SIA, who has shown further commitment to the company.” SIA’s shareholders will vote at the end of this month on an issuance of $5.3b in equity and $3.5b in 10-year mandatory convertible bonds. The plan also offers SIA the option to issue $6.2b through additional tranches. <br/>