SINGAPORE (June 8): Singapore Airlines (SIA) has raised $10 billion of liquidity through its recent rights issue, as well as a mix of secured and unsecured credit facilities.
SIA secured $8.8 billion through the competition of the rights issue on Friday (June 5). It has raised a further $900 million through long-term loans secured on some of its Airbus A350-900 and Boeing 787-10 aircraft.
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The airline has also arranged a sum of over $500 million worth of new committed lines of credit and a short term unsecured loan with several banks.
Separately, SIA also ensured continued access to over $1.7 billion by renewing existing committed lines of credit that were due to mature in 2020, until 2021 or later.
According to the airline, it will continue to explore additional means to shore up liquidity if necessary. For the period up to July 2021, it also retains the option to raise up to a further $6.2 billion in additional mandatory convertible bonds.
“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,” says Goh Choon Phong, CEO of SIA.
“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,” he adds.
As at 9.03am, SIA shares were changing hands 2.3% down, at $4.23.
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