Singapore Airlines uses up last $600m of $8.8b from 2020 rights issue

SINGAPORE (THE BUSINESS TIMES) – Singapore Airlines (SIA) on Thursday said that it has exhausted the $8.8 billion in gross proceeds raised from its rights issue in June last year, with the last $600 million having been used for aircraft and aircraft-related payments between July 1 and Sept 1.

In a filing to the Singapore Exchange, the flag carrier said that the net proceeds of $6.2 billion from the issuance of additional mandatory convertible bonds (MCBs) in June this year had yet to be utilised as at Thursday.

SIA said it has also raised $21.6 billion in fresh liquidity since April 1 last year. The group added that, in addition to the cash on hand, it continues to retain access to $2.1 billion of committed lines of credit that are currently undrawn.

As far as the 2020 rights issue goes, SIA spent the proceeds of $8.8 billion between June 8 last year and Sept 1 this year. SIA had used $2 billion of the proceeds for the repayment of the bridge loan from DBS Bank, which was set up in April last year to provide the liquidity required by SIA for the completion of the rights issue last year.

Other uses of the proceeds included $2.2 billion for operating expenses during the period, $1.4 billion for ticket refunds, $1.4 billion for aircraft and aircraft-related payments, as well as $1.8 billion for debt service.

SIA said the use of proceeds for the whole amount raised in the rights issue is in accordance with the intended use of proceeds.

The company added that it will remain prudent and proactive in managing its liquidity as international air travel continues to be affected by the Covid-19 pandemic.

While international air travel continues to be affected by the pandemic, the company will remain prudent.

SIA shares closed on Thursday at $4.92, up six cents, or 1.2 per cent.