Singapore Airlines launches US dollar debt debut

Home » Companies » Singapore Airlines launches US dollar debt debut Singapore Airlines launches US dollar debt debut January 13, 2021
HONG KONG (REUTERS) – Singapore Airlines (SIA) launched its first US dollar bond on Wednesday (Jan 13) to help fund the purchase of new aircraft, according to a term sheet seen by Reuters.
The size of the deal has yet to be officially set but is expected to be a “benchmark” transaction, which means it should raise at least US$300 million (S$396.8 million), according to a source with direct knowledge of the matter.
A final size will be calculated once investors have placed their orders, the person said. The source could not be named as the information had not yet been made public.
Investors have been told the initial price guidance for the 5½-year deal is set at the US Treasury yield plus 300 basis points.
The company held calls with investors in Asia and Europe on Monday to chart demand for the deal to go ahead, which will be the first of its kind for the airline.
The term sheet said the funds raised would be used for new aircraft purchases and “aircraft-related payments”.
SIA has traditionally issued debt in its local currency but the deal, which cannot be sold to investors in the United States, will help the airline diversify its funding sources, according to people working on the deal, who were not authorised to speak to media.
The airline said on Monday that its December passenger capacity was down 81.3 per cent compared with the same time last year.
It said it expected its passenger levels by the end of March to be about 25 per cent of its pre-Covid-19 levels and that it would fly to nearly 45 per cent of its pre-crisis destinations. More on this topic

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform.

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