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Singapore Airlines raises US$7.2bn in new liquidity

written by Dylan Nicholson | June 9, 2020

Singapore Airlines Airbus A350-900 9V-SMH at Brisbane Airport. (Brisbane Airport)
Singapore Airlines Airbus A350-900 9V-SMH at Brisbane Airport. (Brisbane Airport)

Singapore Airlines has announced that it has managed to raise US$7.2 billion in new equity through the company’s recent rights issue. Along with its new liquidity, the Changi Airport-based national flag carrier of Singapore has built up a mix of secured and unsecured credit facilities.

It is hoped this new liquidity will leave the airline well poised to take on the fallout from the COVID-19 pandemic as it looks to fly into a recovery.

SIA secured US$6.3 billion in liquidity through the successful completion of the rights issue on 5 June 2020. A further US$650 million was raised through long-term loans secured on some of SIA’s Airbus A350-900 and Boeing 787-10 aircraft.

In addition, the company has also arranged new committed lines of credit and a short-term unsecured loan with several banks, which provide further fresh liquidity amounting to more than US$360 million.

Separately, all existing committed lines of credit that were due to mature during the course of 2020 have been renewed until 2021 or later, thus ensuring continued access to more than US$1.2 billion in liquidity.

Singapore Airlines chief executive Goh Choon Phong said, “We are grateful for the strong support of our shareholders for our successful rights issue, which has secured the company’s future amid an unprecedented global health and economic crisis.

“We are also grateful to our relationship banks for their support in extending additional secured and unsecured loans, as well as committed lines of credit. SIA will remain steadfast and agile during this period of great uncertainty, and continue to act nimbly in responding to the evolving market conditions.”

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The Airline said it will continue to explore additional means to shore up liquidity as necessary. For the period up to July 2021, the company also retains the option to raise up to a further US$4.5 billion in additional mandatory convertible bonds, which will provide additional liquidity if necessary.

 

 

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