Singapore Airlines secures $500m in US dollar debt debut

A Singapore Airlines Boeing 777-300ER, with Tail Number 9V-SWR, lands at San Francisco International Airport, San Francisco, California, April 16, 2015. REUTERS/Louis Nastro

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.

Airlines are growing increasingly optimistic travel will resume later this year as a number of countries roll out vaccination campaigns to combat COVID-19.

Singapore Airlines is the first major airline in Asia to tap the global debt markets in 2021, following a rush of deals in the second half of 2020.

There have been 19 deals in that time worth $17.62 billion, the largest of which was a $6 billion issue from Delta Air Lines in September, according to Refinitiv data.

Global airlines are expected to refinance at least $14.9 billion worth of bonds set to mature in 2021, Dealogic data showed, while $23.1 billion in syndicated loans will become due this year.

Singapore Airlines has raised S$13.3 billion ($10.04 billion) in new liquidity in the current financial year which ends in March, it said in the statement.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.