SIA, F&N bond issuances oversubscribed

SINGAPORE Airlines (SIA), which is looking to raise S$700 million through a 10-year bond issuance at 3.13 per cent, has received an order book of more than S$1.1 billion from 60 accounts.

Some 41 per cent of the demand came from banks; 40 per cent from funds, insurance and other agencies; and 19 per cent from private banks. Geographically, 96 per cent of the demand came from Singapore.

SIA plans to use the proceeds for general corporate and working capital purposes. The bookrunners were DBS Bank, HSBC and Standard Chartered Bank.

Meanwhile, DBS Bank as sole bookrunner also priced a S$200 million five-year bond at 2.8 per cent for Fraser and Neave (F&N). These received a final order of around S$250 million from over 22 accounts.

Some 44 per cent of the demand came from funds, insurance and sovereign wealth funds; the rest were from banks, private banks and other sources. All the demand was from Singapore.

F&N plans to use the proceeds for working capital and capital expenditure requirements as well as for refinancing indebtedness of the group.

The bonds mature on Aug 22, 2022.