Singapore Airlines prices $500 million 10-year dollar bond, sees strong orders
Reuters
Published Mar 14, 2024 23:11
By Scott Murdoch and Yantoultra Ngui
SYDNEY/SINGAPORE (Reuters) -Singapore Airlines said on Friday it has priced a 5.25% $500 million U.S dollar bond due in 2034, according to a stock exchange filing.
Singapore's flag carrier launched the 10-year bond on Thursday at U.S Treasuries plus 110 basis points, within initial guidance of 150 bps, according to term sheets seen by Reuters on Thursday.
SIA said on Friday the notes will be issued at a price of 99.646% and bear interest at a fixed rate of 5.25% per annum payable semi-annually. The notes are expected to be issued on March 21, it added.
"We think this new issue is fairly priced relative to other outstanding U.S. dollar bonds from SIA," Cyrus Ng, a research analyst at Bondsupermart, wrote in a note on Thursday.
"Investors who are looking for a longer-dated bond (10-year) may find this bond interesting considering the general lack of longer-tenor bonds within the airline industry," he added.
Orders reached over $4.5 billion, according to a book message sent by the deal's bankers on Thursday evening.
Proceeds will be used for aircraft purchases and aircraft related payments, and general corporate or working capital purposes, including refinancing of existing borrowings, SIA said.
Shares of SIA were 0.5% lower at $S6.39 on Friday morning, versus the local benchmark index's 0.4% decline.
Citigroup and DBS are joint global coordinators, together with HSBC and JP Morgan (NYSE:JPM) as joint bookrunners, according to SIA in the Friday's statement.
SIA is 53.44% owned by the country's state investment firm Temasek Holdings.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.