Singapore Airlines Acquires Rescue Funding To Battle COVID-19 Crisis

Singapore Airlines is offering all shareholders S$5.3 billion in new equity and up to a further S$9.7 billion through ten-year mandatory convertible bonds. Singapore Airlines’ majority shareholder, state-fund Temasek Holdings, also said it would underwrite the sale of shares and convertible bonds for up to S$15 billion. All of this is being done so that the carrier can use the cash to deal with the significant losses as a result of COVID-19 and expand once this global crisis comes to an end. 

Money to be used to support the company’s near-term liquidity requirements

Singapore Airlines has also arranged a S$4 billion bridge loan facility with DBS Bank. The money will be used to support the company’s near-term liquidity requirements, the airline added until the share offering could be completed. 

Singapore Airlines chairman, Peter Seah, said: “This is an exceptional time for the SIA Group. Since the onset of the Covid-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide. We moved quickly to cut capacity and implement cost-cutting measures.

He added: “We have also worked closely with the Singapore government to bring Singaporeans home safely during this time. At the same time, we are also working with various parties to enable our staff on no-pay leave to have other income opportunities. We are especially grateful for Temasek’s strong vote of confidence. The board is confident that this package of new funding will ensure that SIA is equipped with the resources to overcome the current challenges, and be in a position of strength to grow and reinforce our leadership in the aviation sector.”



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