SIA prices S$600m notes issue; names Shell's Goh Swee Chen as board director

SINGAPORE Airlines (SIA) has priced an issue of S$600 million notes to fund aircraft purchases and aircraft related payments, it said on Wednesday after market close.

The five-year notes will bear a fixed 3.16 per cent interest payable semiannually in arrear, and are expected to mature on Oct 25, 2023. They will be issued at an issue price of 100 per cent of their principal amount and in denominations of S$250,000. They are expected to be issued on Oct 25, 2018, subject to satisfaction of customary closing conditions.

DBS Bank, OCBC Bank and UOB Bank are the joint lead managers.

Separately, SIA announced the appointment of Shell Companies chairman Goh Swee Chen as independent non-executive director starting 2019.

"Ms Goh will bring much needed diversity to the board," the announcement said. "Her IT experience will also be of invaluable help to the management in the ongoing business transformation and digitalisation of Singapore Airlines."

Ms Goh has held senior roles with Shell since 2003, in Singapore, China and the Netherlands, and became chairman in 2014. Before that, she was at Proctor & Gamble for 14 years in Malaysia, Japan and Singapore.

As some entities in the Shell group supply jet fuel to SIA's group ofcompanies, she will relinquish her board membership in these entities prior to her appointment at SIA.