Dhaka: Singapore Airlines (SIA) announced on June 8 that it secured about USD 1 billion in credit facilities, in addition to the SGD 8.8 billion it recently raised from a rights issue, to help the airline survive through the coronavirus-led crisis.
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 raised SGD 900 million through long-term loans on some of its Airbus A350-900 and Boeing 787-10 aircraft. The airline also arranged new lines of credit and a short-term loan with several banks for further liquidity of more than SGD 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 June 5, the company raised about SGD 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," said Goh Choon Phong, Chief Executive of the airline.
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 SGD 1.7 billion.
The company also has the option to raise up to a further SGD 6.2 billion in additional mandatory convertible bonds until up to July 2021.