Singapore Airlines Limited will offer all shareholders S$5.3 billion in new equity and up to a further S$9.7 billion through a 10-year Mandatory Convertible Bonds (MCB).
Both will be offered on a pro-rata basis via a rights issue, and both issuances will be treated as equity in the Company’s balance sheet.
SIA has also arranged a S$4 billion bridge loan facility with DBS Bank, supporting the Company’s near-term liquidity requirements.
The Company intends to use the proceeds from the rights issues to fund capital and operational expenditure requirements. Both rights issuances are subject to shareholder approval at an extraordinary general meeting (EGM) that will be held in due course.
SIA’s largest shareholder Temasek Holdings will vote in favour of the resolutions and procure a subscription for its full entitlement and the remaining balance of both issuances.
SIA Chairman Peter Seah said, “This is an exceptional time for the SIA Group. Since the onset of the Covid-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide. We moved quickly to cut capacity and implement cost-cutting measures.
“The strong commitment and support from our staff and our unions as we work together on measures to tackle this crisis have been remarkable. I am heartened that our people are doing everything they can, in these most difficult of times, to support our customers and sustain our operations. We have also worked closely with the Singapore government to bring Singaporeans home safely during this time. At the same time, we are also working with various parties to enable our staff on no-pay leave to have other income opportunities.
“We are especially grateful for Temasek’s strong vote of confidence. The Board is confident that this package of new funding will ensure that SIA is equipped with the resources to overcome the current challenges, and be in a position of strength to grow and reinforce our leadership in the aviation sector.”
Temasek International CEO, Dilhan Pillay Sandrasegara, said, “The impact of Covid- 19 on the global travel industry is unprecedented, especially for airlines and the related sector players. SIA has been seeing strong growth before the hit from the pandemic. It has also committed to fleet renewal as part of its transformation journey. This transaction will not only tide SIA over a short term financial liquidity challenge, but will position it for growth beyond the pandemic.
“We fully support SIA’s plans to transform itself. This includes the modernisation of its fleet. The delivery of a new generation aircraft over the next few years will provide better fuel efficiencies as well as meet its capacity expansion strategy.”
The aviation sector is a key pillar of Singapore’s economy, supporting more than 12 per cent of the country’s GDP and 375,000 jobs. The Group is at the heart of the aviation ecosystem, with SIA, SilkAir and Scoot accounting for more than half of the passengers flying in and out of Changi Airport.
Boeing has announced the scheduled 2026 launch of a satellite – dubbed Q4S – which is designed to demonstrate quantum…
American Airlines has announced nearly 500 new aviation maintenance jobs and additional lines of heavy maintenance work at the carrier’s…
Dirk Beljaarts, Minister of Economic Affairs of the Netherlands, and Pierre Eric Pommellet, Chairman and CEO of Naval Group, signed…
Britten-Norman has announced a new modification for its BN2B-26 Islander aircraft, allowing the use of unleaded fuel in the piston…
Challenge Group has earned the IATA CEIV Lithium Battery certification after six months of preparation, training, and audits. This new…
Vietjet Aviation Joint Stock Company (HOSE: VJC) has announced its audited financial results for the first half of 2024, showing…
Exail has entered into an agreement with Precision Technic Defence A/S to provide Advans Vega Inertial Navigation Systems (INS) for…
Ankara-based simulator manufacturer HAVELSAN has announced that its Boeing B737-8 MAX Full Flight Simulator, operated by Turkish Airlines, has obtained…
Japan Airlines (JAL) has become the first A350 operator globally to sign up with Airbus for the computer-based A350 Virtual…
L3Harris Technologies has received an order from the U.S. Marine Corps for multi-channel handheld and vehicular radio systems worth more…
Major General Piek Budyakto, Director General of Defence Potential at the Indonesian Ministry of Defence, led a technical meeting on…
Airbus Helicopters has secured a contract with the Republic of Iraq for the delivery of 12 H225M multi-role helicopters. The…
Exail has been selected by Naval Group to supply navigation systems for the French Navy's Ocean Patrol Vessels (OPVs) as…
BAE Systems Australia has selected spend management software from Ivalua to streamline and modernise its supply chain processes. The company…
Raytheon recently successfully demonstrated the SeaVue Multi-role Radar's superior long-range target detection at the U.S. Navy's Exercise Rim of the…
The U.S. Army has awarded the Javelin Joint Venture (JJV) a follow-on fiscal year 2024 production contract for Javelin© missiles…
Hurjet, Türkiye’s first indigenous jet-powered supersonic trainer aircraft, performed a demonstration flight earlier this week at the Egypt International Airshow.…
Embraer on Thursday delivered the first C-390 Millennium multi-mission aircraft to the Hungarian Air Force. The aircraft is the first…
At the Egypt International Air Show, the Egyptian Armed Forces announced that Lockheed Martin will supply two C-130J-30 Super Hercules…
Airbus Defence and Space has completed the acquisition of Infodas, a German company specialising in cybersecurity and IT solutions for…
Schiebel’s CAMCOPTER S-100 has been awarded the first-ever Design Verification Report (DVR) by the European Union Aviation Safety Agency (EASA)…
Indra has secured a significant contract with Poland’s Ministry of Defence to supply up to 15 transportable radar systems for…
Korean Air is set to expand its network in China and Japan to cater to the increasing travel demand in…
During the Egypt International Airshow, the Arab Organization for Industrialization (AOI) received a supplier certificate from French aircraft engine manufacturer…
Kinéis, a satellite operator focused on the Internet of Things (IoT), is set to launch its first satellite constellation dedicated…
EDGE Group has formalised a partnership with the Brazilian Navy to complete the development of the National Anti-Ship Missile (MANSUP)…
Pierroberto Folgiero, CEO of Fincantieri, has been recognised as 'CEO of the Year 2024' in the Defence and Cruise sector…
Swedish defence company Saab is now targeting the Philippines for potential sales of its JAS 39 Gripen fighter aircraft, following…
The Defence Technology Institute (DTI) of Thailand, in collaboration with the Royal Thai Army (RTA), conducted testing and evaluation of…
Advanced air mobility company Joby Aviation has formally applied for its aircraft to be certified for use in Australia. Joby’s…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.