SIA doubles limit of medium-term note programme to S$10b

SINGAPORE Airlines (SIA) has upsized its multicurrency medium-term note programme limit to S$10 billion, up from S$5 billion previously, the flag carrier said in a bourse filing on Tuesday.

Net proceeds from the issuance of notes under this programme will be used for general corporate or working capital purposes, or other such purpose(s) as may be specified in the relevant pricing supplement, SIA noted.

DBS and Citigroup Global Markets Singapore are the arrangers of the programme.

SIA's latest announcement comes shortly after the airline last week said its new S$850 million five-year convertible bonds have been upsized amid strong investor interest, and will carry a 1.625 per cent coupon.

The offering was four times oversubscribed by institutional and other investors, which enabled the carrier to upsize the deal from an initial S$750 million and with more attractive terms for SIA, the airline said in a statement on Friday. HSBC was the sole bookrunner and lead manager of the sale.

Since the start of FY2020/2021, including the latest issuance, SIA has raised about S$12.2 billion in total. That includes S$8.8 billion from its rights issue earlier this year, S$2 billion from secured financing and more than S$500 million through new committed lines of credit and a short-term unsecured loan. It also retains the option of raising up to another S$6.2 billion in additional mandatory convertible bonds, which it can exercise by July 2021.

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Separately, The Business Times wrote on Tuesday that SIA's Covid-covered add-on travel insurance for Singapore-Hong Kong flights may draw air travel bubble travellers.

For one-way trips, the only benefit available is travel cancellation and postponement, according to the website of AIG that underwrites the insurance.

As for a round-trip departing from Singapore, the add-on coverage can include emergency evacuation and repatriation costs if the insured is diagnosed overseas.

As at 10.02am on Tuesday, SIA shares were trading at S$4.00, up S$0.13 or 3.4 per cent.