HONG KONG, Jan. 14 – Singapore Airlines has raised $ 500 million (S $ 663 million) in its first US dollar bond, which it will use to purchase new aircraft as the global aviation industry picks up a post-rebound Pandemic prepared.
The deal closed early Thursday and the price was set on US Treasuries plus 260 basis points, according to the airline.
The scope of the 5.5-year contract was finalized after the bookrunners received bids for $ 2.85 billion and the bond had a 3 percent coupon, the statement said.
“The issue further strengthens the company’s liquidity position and offers SIA the financial flexibility to achieve medium to long-term growth beyond the Covid-19 pandemic,” it said.
Airlines are becoming more and more optimistic. Travel will resume later this year as a number of countries run vaccination campaigns to fight Covid-19.
Singapore Airlines is the first major airline in Asia to enter global debt markets in 2021 after doing a lot of business in the second half of 2020.
During that time, there have been 19 transactions valued at $ 17.62 billion, the largest of which, according to Refinitiv, was a $ 6 billion issue by Delta Air Lines in September.
According to Dealogic data, global airlines are expected to refinance at least $ 14.9 billion worth of bonds due by 2021, while syndicated loans of $ 23.1 billion will mature this year.
Singapore Airlines raised $ 13.3 billion in new liquidity in the current fiscal year that ends in March, the statement said.