SIA raises S$2b from sale-and-leaseback transactions for 11 aircraft

NATIONAL carrier C6L has raised S$2 billion from sale-and-leaseback transactions for 11 aircraft comprising seven Airbus A350-900s and four Boeing 787-10s.

Four different parties arranged the transactions, SIA said in a bourse filing on Monday. They are Aergo Capital, Altavair, EastMerchant/Crianza Aviation and Muzinich and Co.

The deal with aircraft leasing company Aergo Capital involves one Airbus A350-900 and one Boeing 787-10 aircraft. Meanwhile, the transaction with aviation finance company Altavair involves four Airbus A350-900s.

The EastMerchant/Crianza Aviation deal includes one Airbus A350-900 and two Boeing 787-10s. EastMerchant is a provider of asset-based finance and management solutions for the airline industry, while Crianza Aviation is a high-value aircraft lessor and asset manager.

The deal with Muzinich and Co, a privately-owned, institutionally-focused investment firm, involves one Airbus A350-900 and one Boeing 787-10 aircraft.

Including these sale-and-leaseback transactions, SIA has raised about S$15.4 billion in fresh liquidity since April 1, 2020. This amount includes the S$8.8 billion from its rights issue, S$2.1 billion from secured financing, S$2 billion via its convertible bonds and notes issuance, and more than S$500 million through new committed lines of credit and a short-term unsecured loan.

SIA chief executive Goh Choon Phong said the additional liquidity from the sale-and-leaseback transactions reinforces the group's ability to navigate the impact of the Covid-19 pandemic from "a position of strength".

Shares of SIA closed at S$4.95 on Monday, down by S$0.11 or 2.17 per cent.