Singapore Airlines raises $600m in US dollar bond deal

Singapore Airlines said Thursday it had raised $600m in a US dollar bond deal to help fund aircraft purchases and repay existing borrowings as it grapples with lower travel demand amid rising Omicron infections. The seven-year notes, its second US dollar bond offering, have a coupon of 3.375%. A year ago, it raised $500m in a five-year issue with a 3% coupon. The airline was aiming to raise between $500m and $750m, two sources with direct knowledge of the matter told Reuters on Tuesday. The Singapore government last month froze the sale of tickets for arriving flights under its quarantine-free travel programme for four weeks, citing the risk from the fast-spreading Omicron COVID-19 variant. Before this offering, the airline had raised S$21.6b ($16b) of liquidity during the pandemic and had untapped debt facilities of S$2.1b as of Sept. 30, according to its latest financial results presentation. Despite the fall in demand, it has been spending billions of dollars renewing its fleet to help lower fuel burn and carbon emissions.<br/>