SIA prices S$500 million 10-year notes at 2.7% fixed rate

Flag carrier Singapore Airlines (SIA) has priced S$500 million in 10-year notes at a fixed rate of 2.7 per cent per annum, with proceeds to be used for aircraft purchases and other corporate purposes.

The bonds, which are expected to be issued on Jan 30, will be offered in denominations of S$250,000, with interest payable semi-annually.

They will mature on Jan 30, 2036, the airline said in a bourse filing on Tuesday (Jan 20).

The notes will be offered to institutional and accredited investors in Singapore, as well as investors outside the US.

Net proceeds will be used for “aircraft purchases, aircraft related payments and general corporate or working capital purposes, including refinancing of existing borrowings”, SIA said.

DBS, OCBC and UOB are joint global coordinators for the issuance, with Standard Chartered joining as joint lead manager.

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Shares of SIA closed 0.5 per cent or S$0.03 higher at S$6.40 on Tuesday, before the announcement.

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.