Singapore Airlines prices US$600m notes due 2029 at 3.375%

SINGAPORE Airlines (SIA) has priced US$600 million in fixed-rate notes due 2029, to be issued at 99.273 per cent of their principal amount on Jan 19.

The Series 010 notes will bear a coupon of 3.375 per cent per annum until their maturity on Jan 19, 2029, the national carrier said in a bourse filing on Thursday (Jan 13).

SIA said in a separate press statement that the bond was oversubscribed, with its order book exceeding US$1.2 billion. Inclusive of this notes issue, the group has raised around S$22.4 billion in additional liquidity since the start of the pandemic, it added.

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

SIA will issue the notes under its S$10 billion multicurrency medium-term note programme.

The joint global coordinators for the issuance are Citigroup and DBS - who are also joint lead managers along with Standard Chartered Bank (Singapore) and BNP Paribas.

On Jan 11, Reuters reported that SIA is aiming to raise US$500 million to US$750 million in a US bond deal. The airline had mandated banks to work on the transaction and started briefings with investors about the deal on Tuesday.

Shares of the carrier closed S$0.02 higher at S$5.04 on Thursday.