SIA to adjust conversion prices of 1.625%  convertible bonds, MCBs in view of dividend

SINGAPORE Airlines (SIA) will adjust the conversion price of its 1.625 per cent convertible bonds due 2025, from S$5.743 to S$5.6309, the company announced in a Monday (Dec 12) bourse filing.

The national carrier will also adjust the conversion price of its zero-coupon mandatory convertible bonds (MCBs) due 2030, from S$4.84 to S$4.7453.

Both adjustments account for the interim dividend of S$0.10 per share that the company announced last month for the half year ended Sep 30. The adjusted conversion prices will take effect from Dec 13.

SIA had announced the issuance of S$850 million worth of the 1.625 per cent convertible bonds back in 2020, to strengthen its liquidity position against the pandemic challenges. The company had then garnered strong investor interest for the bonds, with the issuance upsized from the initial S$750 million. In 2021, it raised S$6.2 billion from the issuance of the MCBs, which were in their second tranche.

Shares of SIA closed at S$5.51 on Monday, up 0.4 per cent or S$0.02.