Singapore Airlines Might Be Considering 10-Year U.S. Dollar Bond Offering

By Kimberley Kao

Singapore Airlines could be looking to issue a 10-year U.S. dollar bond to raise funds.

"At this juncture, a 10-year U.S. dollar bond issuance looks attractive," a company spokesperson told Dow Jones Newswires, adding that the carrier regularly reviews funding requirements versus its existing cash position.

"This helps to ensure that we have enough buffer and, at the same time, allows us to tap the markets when opportunities exist."

The Singapore flag carrier was responding to a Reuters report, citing unnamed sources, that it is readying a 10-year bond issuance that could raise at least US$300 million. Reuters reported that the deal's initial price guidance had been set at the 10-year U.S. Treasury rate plus 150 basis points, citing a term sheet it reviewed.

Singapore Airlines didn't provide further details.

The company said in an exchange filing Wednesday that it will redeem 750 million Singapore dollars (US$562.9 million) of outstanding bonds due March with a coupon of 3.03%, paying an interest of S$11.3 million.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

March 14, 2024 04:13 ET (08:13 GMT)

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