SINGAPORE - Singapore Airlines has secured US$1 billion in loans after recently raising US$6.32 billion in a rights issue to cushion the blow of the coronavirus (COVID-19) pandemic.
“During this period of high uncertainty, Singapore Airlines will continue to explore additional means to shore up liquidity as necessary,” the Singapore flag carrier said in an official statement on Monday (8/6).
The statement also mentioned that the maturity dates for some of the airline’s debts have been extended to 2021 or later, ensuring over S$1.7 billion in liquidity.
As reported by Reuters, Singapore Airlines’ rights issue took place on Friday (5/6) and was backed by majority shareholder Temasek Holdings, which owns a 55% stake in the airline. As many as 1,777,692,486 shares were released in the corporate action at S$3 per share, along with mandatory convertible bonds (MCBs) at S$1 per bond.
Singapore Airlines’ total financing is among the highest raised by any airline due to the COVID-19 pandemic, which has resulted in countries imposing travel restrictions. Airlines highly dependent on international routes, including Singapore Airlines and its Middle Eastern rivals such as Emirates and Qatar Airways, are most significantly affected by such restrictions. (MS)