SIA may need funds again with slow recovery but it has several options besides tapping MCBs

THE S$8.8 billion that Singapore Airlines (SIA) raised in a rights issue last year is almost depleted, but global air travel is not coming back in full swing soon. Fresh waves of infections are being reported across the globe, and vaccination rates have been hit by a supply snag. SIA might, therefore, need some fresh funds.

The national carrier has done a great job of raising cash so far. On top of the rights issue, it has sold bonds totalling S$2 billion. This included a maiden issue in US dollars. It has also secured financing of S$2.1 billion on some of its aircraft.

To conserve cash, SIA also deferred capital expenditure of more than S$4 billion. It has shrunk its labour force, and cut the remunerations of management and directors.