With prolonged turbulence, SIA likely to draw on further S$6.2b of bonds

WILL Singapore Airlines (SIA) need to tap its standby issuance of up to S$6.2 billion in mandatory convertible bonds?

UOB Kay Hian thinks so. It said in a report that if passenger load factor improves to above 40 per cent, the odds of an issuance would be reduced.

But given the bleak outlook for the industry, the flag carrier is likely to be in need of more cash.