SIA prices US$500m notes due 2034 at 5.296% yield
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The fixed-rate notes will bear a coupon of 5.25 per cent per annum until their maturity.
ST PHOTO: CHONG JUN LIANG
Navene Elangovan
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SINGAPORE - Singapore Airlines (SIA) has priced US$500 million (S$668.18 million) of 10-year US-dollar bonds at a reoffer price of 99.646 per cent of their nominal value to yield 5.296 per cent.
The fixed-rate notes will bear a coupon rate of 5.25 per cent per annum until their maturity on March 21, 2034, said DBS on March 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.
SIA’s latest issuance comes as the flag carrier is set to redeem its $750 million in outstanding 3.03 per cent bonds on the maturity date of March 28. THE BUSINESS TIMES
