S$15b cash call gives SIA a shot at surviving Covid-19
Singapore
SINGAPORE Airlines' massive cash call of up to S$15 billion - backed by Temasek Holdings' financial heft - will boost the national carrier's stamina to endure the Covid-19 pandemic that has decimated global air travel. The proposed exercise, involving a rights issue of new shares and convertible bonds, will also give it a shot at restoring itself when the crisis ends.
Brendan Sobie, independent analyst and founder of Sobie Aviation, puts it succinctly: "SIA is now in a very enviable position to be able to wait until the international market recovers, whenever that is".
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
iPhone maker Hon Hai’s April sales rise 19% in positive signal
Worsening weather is igniting a US$25 billion market
TikTok tells advertisers: ‘We are not backing down’
EV automakers get reprieve in US tax credit rules
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance