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Singapore Airlines Picks Banks for $500m-750m USD Bond Issue

Citigroup and DBS are leading the transaction, with BNP Paribas and Standard Chartered as book runners, a term sheet showed

Singapore Airlines
The deal allowed the airline to swap part of its order for 15 A320neo jetliners and two A350-900 passenger versions it previously ordered from Airbus and remain to be delivered. Reuters file photo.


Singapore Airlines is aiming to raise $500 million to $750 million in a US dollar bond deal, two sources with direct knowledge of the matter have said.

Singapore Airlines confirmed it had hired banks to explore a bond deal, without commenting on its potential size.

The airline said it had mandated Citigroup and DBS to lead the transaction, with BNP Paribas and Standard Chartered as book runners.

“If we go ahead with the bond issuance, the proceeds will be used for general purposes including capital expenditure and refinancing of existing borrowings,” it said in the statement.

The deal is classified as Reg S, which means the bonds can only be purchased by investors outside of the United States.

If the deal proceeds, it will be the second dollar bond that Singapore Airlines has issued after its first transaction of the kind raised $500 million in January last year.

Travel-related deals remain popular among investors, despite the Covid-19 pandemic still taking a heavy toll on the industry.

Hong Kong’s Airport Authority last week raised $4 billion in US dollar bonds which attracted $11.5 billion worth of demand from investors.

In late December, Singapore’s government said it had frozen new ticket sales under its vaccinated travel lane programme until January 20.


  • Reuters with additional editing by Kevin Hamlin

This report was updated on January 11, 2022 with new details.




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Kevin Hamlin

Kevin Hamlin is a financial journalist with extensive 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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