Singapore Airlines bond could prompt more Asian aviation debt deals

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HONG KONG: Singapore Airlines has raised US$500 million (RM2 billion) in its first US dollar bond issue, which the company will use to buy new aircraf...

Singapore Airlines has raised US$500 million in its first US dollar bond issue, which the company will use to buy new aircraft as the global aviation industry prepares for a post-pandemic travel rebound.

The size of the 5½-year deal was finalised after bookrunners received bids above US$2.85 billion and the bond carries a 3% coupon rate, the statement said. There were 150 investors who bought into the deal, according to a term sheet seen by Reuters, and 76% of those were based in Asia."The reality is that these businesses need capital and the expectation is that there will be more debt issuances to come from the airlines," said one source, who had direct knowledge of the Singapore Airlines deal and spoke on condition of anonymity.

Singapore Airlines is the first major airline in Asia to tap the global debt markets in 2021, following a rush of deals in the second half of 2020.

 

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