SIA prices US$500 million notes due 2034 at 5.296% yield

SINGAPORE Airlines (SIA) : C6L 0% has priced US$500 million of 10-year, 5.25 per cent bonds at a re-offer price of 99.646 per cent of their nominal value to yield 5.296 per cent.

The fixed-rate notes will bear a coupon of 5.25 per cent per annum until their maturity on Mar 21, 2034, said DBS on Thursday (Mar 14). The coupon will be paid semi-annually.

DBS and Citigroup are joint global coordinators for the bond. They are also the joint bookrunners with HSBC and JPMorgan.

The yield for the bonds represents a spread of 110 basis points over 10-year US Treasuries, which were yielding 4.196 per cent.

Net proceeds from the proposed issue will be used for aircraft purchases, aircraft-related payments, as well as for general corporate or working capital purposes. This includes refinancing existing borrowings of SIA, said DBS.

SIA will issue the notes under its multicurrency medium-term note programme.

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SIA’s latest issuance comes as the flag carrier is set to redeem its S$750 million in outstanding 3.03 per cent bonds on the maturity date of Mar 28.