Singapore Airlines (SIA) has successfully raised S$850 million via a convertible bond issue that has been placed with a variety of institutional investors.
The offer was more than four times oversubscribed with strong investor interest. As a result, the issuance was upsized from the initial S$750 million to S$850 million with more attractive terms for SIA.
The five-year bonds will carry a competitive coupon of 1.625%, and can be converted into ordinary shares at a price of S$5.743 – a significant premium of 45.8% over the 12 November 2020 closing price of S$3.94. The Company appointed The Hong Kong and Shanghai Banking Corporation (HSBC) as the sole bookrunner and lead manager of the issue.
This issuance further strengthens the Company’s liquidity position, and bolsters its ability to navigate the challenges posed by the impact of the Covid-19 pandemic on the business. Proceeds from the bonds will be used to fund operating and capital expenditure, and debt servicing.