Singapore Airlines' $6.2b rights issue undersubscribed

Temasek Holdings will again take up the lion's share of SIA's mandatory convertible bonds (MCBs), with the second tranche being undersubscribed. The flag carrier received valid acceptances and excess applications for $3.76b in principal amount of the rights MCBs, representing just 60.6% of the $6.2b available under the rights issue. This included $3.43b taken up by SIA controlling shareholder Temasek and its wholly-owned subsidiary Napier Investments under their pro-rata entitlement to the MCBs in the rights issue. That made up slightly more than half of the total principal amount available. The balance $2.44b that was unsubscribed, representing 39.4% of the total amount of rights MCBs, will also be mopped up by a Temasek unit. The newly issued MCBs will be listed on the Singapore Exchange on or about June 25, and trading is expected to begin at 9am on the same day.<br/>