Singapore Airlines has spent $7.1 billion of the $8.8 billion raised in rights issue

Between Oct 14 and Dec 13, SIA spent a further $900 million of the gross proceeds from the rights issue.
Between Oct 14 and Dec 13, SIA spent a further $900 million of the gross proceeds from the rights issue.ST PHOTO: KEVIN LIM

SINGAPORE (THE BUSINESS TIMES) - Singapore Airlines (SIA) has used about $7.1 billion of the $8.8 billion raised from a rights issue in June, it said in a filing to the Singapore Exchange on Monday.

Between Oct 14 and Dec 13, the flag carrier spent a further $900 million of the gross proceeds from the rights issue. Of this amount, $500 million was used to fund ongoing operating expenses, $200 million went towards refunding tickets sold on flights which have been cancelled in view of continuing border controls and travel restrictions, and $200 million was applied towards debt servicing.

Its last update on the use of proceeds from the rights issue was made in mid-October, when SIA said it had spent $1.8 billion over about two months. The amount was used for ongoing operating expenses, ticket refunds and debt servicing.

In addition to the funds raised during the rights issue, SIA said it has raised for FY2020/21 a total of $2.1 billion through loans secured on its aircraft and a short-term unsecured loan, $850 million through a convertible bond issue and $500 million via a private placement of new 10-year bonds.

It has access to about $2.1 billion of lines of credit available for drawing, and has the option to issue additional mandatory convertible bonds to raise up to $6.2 billion if the crisis prolongs.

SIA shares closed at $4.38 on Monday, down 1.13 per cent or five cents.