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Singapore Airlines Launches 7-Year US Dollar Bond Issue

The issue consists of one tranche, and price guidance to investors has been set at Treasuries plus 210 basis points, the term sheet said


Singapore Airlines
The Singapore government last month froze the sale of tickets for arriving flights under its quarantine-free travel programme for four weeks, citing the risk from the fast-spreading Omicron Covid-19 variant.

 

Singapore Airlines on Wednesday launched a seven-year US dollar bond offering, according to term sheet details.

The issue consists of one tranche, and price guidance to investors has been set at Treasuries plus 210 basis points, the term sheet said.

Singapore Airlines did not immediately respond to a request for comment.

The airline is aiming to raise $500 million to $750 million, two sources with direct knowledge of the matter said on Tuesday.

The deal is only the second US dollar bond offering from Singapore Airlines, with the first made in January 2021 when it raised $500 million.

It plans to use the cash raised to buy new planes, make aircraft related payments and refinance some existing debt, the term sheet said.

Final pricing for the bond is due to be set later on Wednesday.

 

  • Reuters with additional editing by Kevin Hamlin

 

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Kevin Hamlin

Kevin Hamlin is a financial journalist with more than 40 years of experience covering Asia. Before joining Asia Financial, Kevin worked for Bloomberg News, spending 12 years as Senior China Economy Reporter in Beijing. Prior to that, he was Asia Bureau Chief of Institutional Investor for ten years.

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