Singapore Airlines Bond Could Prompt More Asian Aviation Debt Deals

published 14.01.2021 14:30

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Global airlines are expected to refinance at least $14.9 billion worth of bonds set to mature in 2021, Dealogic data showed, while $23.1 billion in syndicated loans will become due this year.

Singapore Airlines is the first major airline in Asia to tap the global debt markets in 2021, following a rush of deals in the second half of 2020.

The size of the 5.5 year deal was finalised after bookrunners received bids above $2.85 billion and the bond carries a 3% coupon rate, the statement said.

HONG KONG: 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 a post-pandemic travel rebound.

“The reality is that these businesses need capital and the expectation is that there will be more debt issuances to come from the airlines,” said one source, who had direct knowledge of the Singapore Airlines deal and spoke on condition of anonymity.

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