SINGAPORE - Singapore Airlines is proposing to offer $500 million of five-year fixed-rate bonds to both institutional and retail investors, with the offer to be upsized to $750 million if response is overwhelming.
In a regulatory filing on Tuesday (March 19), the national carrier said that the proposed offer - under its $2 billion medium-term bond programme established on March 13 - includes a placement to institutional investors and relevant persons (each as defined in the Securities and Futures Act), and a public offer tranche that will be open to retail investors in Singapore.
The bonds are expected to comprise up to $500 million in aggregate principal amount of fixed rate bonds maturing in 2024. If there is over-subscription, the offer may be upsized to a maximum of $750 million.
The bonds will be issued in denominations of $1,000 with an issue price of $1,000, and are intended to be listed on the Singapore Exchange.
A bookbuilding process with institutional investors and relevant persons will commence shortly, while further details on the offer will be announced after the bookbuilding process. According to an earlier media statement, net proceeds will be used to refinance existing borrowings, finance investments and fixed assets and for general working capital purposes.
DBS has been appointed as arranger of the programme, while DBS, OCBC and UOB were named as programme's dealers.
SIA was the first listed company to sell $150 million in bonds to retail investors in 2010, with a minimum subscription of $10,000.