HONG KONG, January 14 (Reuters) – Singapore Airlines has raised $ 500 million in its first U.S. dollar bond issue, which the company will use to buy new aircraft as the global aviation industry prepares for post-pandemic travel recycling.
The deal was completed early Thursday and the price was set at U.S. treasuries in addition to 260 basis points, according to a term page seen by Reuters.
The 5.5-year contract size was terminated after booksellers received over $ 1.5 billion in bidding books, and the bond carries a 3% coupon rate, the term page shows.
Airlines are increasingly optimistic that travel will begin later this year as a number of countries are launching vaccine campaigns to combat COVID-19.
Singapore Airlines will be the first major airline in Asia to hit the global debt markets in 2021, following several deals in the second half of 2020.
There have been 19 contracts in that period worth $ 17.62 billion, the largest of which is a $ 6 billion deal from Delta Air Lines in September, according to Refinitiv data. Global airlines are expected to refinance at least $ 14.9 billion worth of bonds established to mature in 2021, Dealogic data showed, while $ 23.1 billion in syndicated loans will be outstanding this year. (Reporting by Scott Murdoch in Hong Kong and Anshuman Daga in Singapore; Editing by Kim Coghill)