By Hayati Nupus
JAKARTA, Indonesia (AA) - Singapore Airlines (SIA) has successfully raised up to 850 million Singapore dollars ($630 million) through a convertible bond issue, that saw interest from a variety of institutional investors.
"The offer was more than four times oversubscribed with strong investor interest," said the airline in a press release published on Friday.
As a result, the issuance led to a greater amount than the initial 750 million Singapore dollars, with more attractive terms for SIA.
The carrier said the five-year bonds would carry a competitive coupon of 1.625% and could be converted into ordinary shares at a price of 5.743 Singapore dollars.
"This issuance further strengthens the company's liquidity position and strengthens its ability to navigate the challenges posed by the COVID-19 pandemic on the business sector," SIA added.
The proceeds from the sale of bonds will be used to fund operations, capital expenditures and debt payments.
"This achievement shows the company's ability in overcoming near-term challenges and emerge as a leader in the airline industry," said the Chief Executive Officer of SIA, Goh Choon Phong.