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SIA secures US$540 million in loans

written by Hannah Dowling | July 24, 2020
A Singapore Airlines aircraft lands in Alice Springs
A Singapore Airlines aircraft lands in Alice Springs (wikicommons)

Singapore Airlines (SIA) has successfully completed a US$541 million in debt capital through a series of long-term loans, secured on a number of its Airbus A350-900 and Boeing 787-10 aircraft.

With the completion of these transactions, the airline has now secured a total of US$1.19 billion from secured financing since the beginning of the 2020-21 financial year.

According to SIA, the total liquidity raised during the same period now stands at approximately US$7.9 billion.

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This includes US$6.4 billion from the airline’s rights issue, US$1.19 billion from secured financings, and more than US$360 million from new committed lines of credit and a short-term unsecured loan from financial institutions.

Further, all existing committed lines of credit that were due to mature during the course of 2020 have been renewed until 2021 or later, according to the airline.

Together with the new committed lines of credit, this ensures continued access to more than US$1.5 billion in committed liquidity.

The carrier has also stated that, for the period up to July 2021, it has the option to raise another US$4.5 billion in additional mandatory convertible bonds, to provide further liquidity, if necessary.

“During this period of high uncertainty, SIA will continue to explore additional means to shore up liquidity as necessary,” the company stated.

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Embraer secures US$300m

Meanwhile, Brazillian manufacturer Embraer has announced that it has secured US$300 million in working capital, after signing contracts with five separate public and private banks – Banco do Brasil, Bradesco, Morgan Stanley, Natixis, and Santander.

The full disbursements should be received by the end of July, to reinforce the cash position of Embraers for the second half of 2020 and into 2021, the company said.

“These working capital financing lines have maturities of two to four years and the funds will be used during the production phase through the moment of product shipment for the export market,” Embraer said.

The manufacturer noted that it “will continue to evaluate additional forms of financing in order to maintain a long-term indebtedness profile conducive to its business cycle.”

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