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.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

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.