SINGAPORE: Singapore Airlines (SIA) said on Monday (Jun 8) that it had secured about US$1 billion in credit facilities, in addition to the S$8.8 billion it recently raised from a rights issue, to help it weather the COVID-19 pandemic.
Global airlines have taken a huge blow as curbs imposed to stop the spread of the coronavirus led to a plunge in travel demand, leading to a liquidity crisis at firms. Singapore Airlines' total financing is among the biggest raised by any carrier amid the global health crisis.
Singapore Airlines said it had raised S$900 million through long-term loans on some of its Airbus A350-900 and Boeing 787-10 aircraft. It had also arranged new lines of credit and a short-term loan with several banks for further liquidity of more than S$500 million.
"During this period of high uncertainty, SIA will continue to explore additional means to shore up liquidity as necessary," the company said in a statement.
On Jun 5, the company raised about S$8.8 billion through a rights issue, which was backed by existing shareholder Temasek Holdings.
“SIA will remain steadfast and agile during this period of great uncertainty, and continue to act nimbly in responding to the evolving market conditions," says chief executive Goh Choon Phong.
Singapore Airlines added that the maturity dates for some of its debts had been extended to 2021 or later, ensuring an available liquidity of more than S$1.7 billion.
The company also has the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds until up to July 2021.