SIA prices US$500 million notes due 2034 at 5.296% yield
SINGAPORE Airlines (SIA) : C6L 0% has priced US$500 million of 10-year, 5.25 per cent bonds at a re-offer price of 99.646 per cent of their nominal value to yield 5.296 per cent.
The fixed-rate notes will bear a coupon of 5.25 per cent per annum until their maturity on Mar 21, 2034, said DBS on Thursday (Mar 14). The coupon will be paid semi-annually.
DBS and Citigroup are joint global coordinators for the bond. They are also the joint bookrunners with HSBC and JPMorgan.
The yield for the bonds represents a spread of 110 basis points over 10-year US Treasuries, which were yielding 4.196 per cent.
Net proceeds from the proposed issue will be used for aircraft purchases, aircraft-related payments, as well as for general corporate or working capital purposes. This includes refinancing existing borrowings of SIA, said DBS.
SIA will issue the notes under its multicurrency medium-term note programme.
SEE ALSO
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
SIA’s latest issuance comes as the flag carrier is set to redeem its S$750 million in outstanding 3.03 per cent bonds on the maturity date of Mar 28.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
China’s CICC demotes senior bankers, cuts pay to slash costs
China’s Sinopec in talks for gas offtake, stake in Canada’s Cedar LNG
Chinese tariffs could leave cognac makers with too much brandy
Citi promotes Damien Tan to corporate banking head for Singapore
Coffee variety is priciest since 1970s in blow to instant brews
South Korea’s probe alleges 211.2 billion won of illegal short trades