Singapore Airlines prices S$500m of 3.5% 10-year notes

Claudia Chong

Published Tue, Nov 24, 2020 · 01:43 PM

SINGAPORE Airlines (SIA) has priced S$500 million worth of 3.5 per cent notes due 2030 under its S$10 billion multi-currency medium-term note programme, which it has upsized from S$5 billion previously.

The notes are expected to be issued on Dec 2. DBS Bank and United Overseas Bank acted as joint lead managers of the issue.

SIA said the offer was launched at an offer size of S$300 million in response to an initial expression of interest, and was increased to S$500 million after "strong appetite was apparent from a select group of private investors".

Net proceeds will be used for general purposes, including refinancing of existing borrowings.

The bond issue brings the total funds raised by SIA since the start of FY21 to about S$12.7 billion. This includes S$8.8 billion from a rights issue, S$2 billion from secured financing, S$850 million via a recent convertible bond issue, and more than S$500 million through new committed lines of credit and a short-term unsecured loan.

Shares in the company ended trading at S$4.41 on Tuesday, up S$0.34 or 8.35 per cent.