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Singapore Airlines raises $600 million in U.S. dollar bond deal -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: One Singapore Airlines aircraft makes its way up to the runway as another sits on Changi Airport’s asphalt, Singapore. This was November 1, 2004. REUTERS/Luis Enrique Ascui LA/SH

(Reuters) – Singapore Airlines (OTC) Ltd announced on Thursday that it raised $600million in a U.S. Dollar bond deal. This was to finance aircraft acquisitions and repay current borrowings. The company is struggling with lower travel demand due to rising Omicron infection rates.

A coupon of 3.375% is included in the 7-year U.S. Dollar bond notes. It raised $500 million last year in a five-year bond issue that included a coupon of 3%.

According to two people with knowledge, the airline was looking for a raise of between $500 million million and $750 millions.

Last month, the Singapore government stopped the sale of arriving tickets under its quarantine-free travel program for four weeks. This was due to the Omicron COVID-19 variant rapidly spreading.

According to the latest financial results, before this offer, the airline had previously raised S$21.6 million ($16 billion) in liquidity and untapped debt resources of S$2.1billion as of September 30, according its most recent presentation.

It has spent billions to renew its fleet, despite the decline in demand. This is done to reduce fuel consumption and carbon emissions.

($1 = 1.3459 Singapore dollars)

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