Singapore Airlines readies 10-year dollar bond issuance, term sheet shows

SINGAPORE Airlines is preparing to issue a 10-year dollar bond that could raise at least US$300 million, according to three sources with direct knowledge of the matter.

Initial price guidance for the deal has been set at the 10-year US Treasury rate plus 150 basis points, a term sheet seen by Reuters showed. The size of the deal could reach US$500 million, one of the sources added. The sources could not be identified discussing confidential information.

“At this juncture, a 10-year US dollar bond issuance looks attractive,” a Singapore Airlines spokesperson said, adding the company regularly reviewed its funding requirements versus its existing cash position.

Orders worth more than US$1 billion have been lodged on Thursday (Mar 14) by potential investors, a book message sent by the deal’s bankers showed.