Singapore Airlines has confirmed that it raised
S$10 billion of liquidity through its recent Rights Issue, as well
as a mix of secured and unsecured credit facilities.
SIA secured S$8.8 billion in liquidity through the
successful completion of the rights issue on 5 June 2020. A
further S$900 million was raised through long term loans secured
on some of SIA’s Airbus A350-900 and Boeing 787-10 aircraft.
The company has also arranged new
committed lines of credit and a short term unsecured loan with
several banks, which provide further fresh liquidity amounting to
more than S$500 million.
Separately, all existing committed lines of credit
that were due to mature during the course of 2020 have been
renewed until 2021 or later, thus ensuring continued access to
more than S$1.7 billion in liquidity.
During this period of high uncertainty, SIA has
said that it will
continue to explore additional means to shore up liquidity as
For the period up to July 2021, the company also
retains the option to raise up to a further S$6.2 billion in
additional mandatory convertible bonds, which will provide
additional liquidity if necessary.
Goh Choon Phong, Singapore Airlines Chief Executive,
said, “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. 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.”