SIA raises S$500m from privately placed 10-year bonds

Singapore Airlines has raised S$500m ($373m) from a private placement of new 10-year, 3.5% bonds. The offer was launched at S$300m and upsized to S$500m, “after a strong appetite was apparent from a select group of private investors”, says the group. Proceeds net of issue expenses will be used for general corporate or working-capital purposes, including the refinancing of existing borrowings. The bonds are set to be issued on 2 December and come under SIA’s Multicurrency Medium-Term Note Programme, which has been doubled from S$5 billion to S$10b, the group disclosed on 17 November. Referring to this issue and a recently concluded S$850m convertible bond issue placed with institutional investors and other investors, CE Goh Choon Phong states: “These reflect the strong confidence that investors have in the ability of Singapore Airlines to navigate the near-term challenges, and emerge as a leader in the airline industry.” SIA says that including the latest bond issue, it has raised approximately S$12.7b in additional liquidity since the start of the financial year ending 31 March 2021.<br/>