Singapore Airlines Secures S$10 Billion in Fresh Liquidity Amidst COVID-19 Pandemic

Singapore Airlines announced a number of reinstated scheduled services for Southeast Asia, North Asia, South West Pacific, Europe, and the United States last week. After providing a comprehensive view of the changes to flight experience with enhanced health and safety measures yesterday, the flag carrier of Singapore has announced a S$10 billion reinforcement of fresh liquidity today.

Photo Credit: Singapore Airlines

Singapore Airlines has managed to secure S$8.8 billion in liquidity through the successful completion of the rights issue on 5 June 2020. A further S$900 million was raised through long term loans secured on some of Singapore Airlines' Airbus A350-900 and Boeing 787-10 aircraft. In addition, the Company has also arranged new committed lines of credit and a short term unsecured loan with several banks, which provide further fresh liquidity amounting to more than S$500 million. Separately, all existing committed lines of credit that were due to mature during the course of 2020 have been renewed until 2021 or later, thus ensuring continued access to more than S$1.7 billion in liquidity.

During this period of high uncertainty, Singapore Airlines will continue to explore additional means to shore up liquidity as necessary. For the period up to July 2021, the Company also retains the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds, which will provide additional liquidity if necessary.