Report by : Gan Yung Chyan, KUCINTA SETIA
According to people in the financial industry familiar with the matter, Singapore Airlines is considering issuing US Dollar-denominated bonds for the first time to increase its cash reserves in response to the impact of the epidemic.
Sources said that starting from 11 January 2021, the company will hold a series of fixed-income investor conference calls in Asia and Europe to discuss potential bond issuance matters.
The covid pandemic has destroyed the global tourism industry, forcing airlines to suspend flights, lay off employees, and seek financial help from governments and investors. Although vaccines provide a cautiously optimistic outlook, it is still uncertain whether travel demand will continue to rebound under the current situation of increasing epidemics in many countries and regions.
Last year, Singapore Airlines’ passenger capacity dropped by 81%. The company said in a statement on Monday that it expects that by March this year, its transportation capacity will be only a quarter of what it was before the outbreak.
The company raised a total of S$1.35 billion (approximately US$1 billion) through the issuance of private placement bonds and convertible bonds at the end of last year to support its cash reserves.
Source: Financial Industry, http://www.minhangshi.com/m/h5/detail/9096665
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