Singapore Airlines raises $500 mn in dollar debt debut to buy new aircraft
HONG KONG (Reuters) – Singapore Airlines has raised $500 million in its first U.S. dollar bond issue, which the company will use to buy new aircraft as the global aviation industry prepares for a post-pandemic travel rebound.
The transaction was finalised early Thursday and the price was set at U.S. treasuries plus 260 basis points, according to a statement from the airline.
The size of the 5.5 year deal was finalised after bookrunners received bids above $2.85 billion and the bond carries a 3% coupon rate, the statement said.
“The issuance further strengthens the company’s liquidity position and provides SIA with the financial flexibility to capture medium to long term growth beyond the Covid-19 pandemic,” it said.
