By Ben Otto
Singapore Airlines Ltd. plans to raise 15 billion Singapore dollars ($10.48 billion) via equity and debt to shore up its balance sheet after grounding most of its fleet due to the Covid-19 crisis.
The Singapore-based airline plans to raise up to S$5.3 billion via a rights issue and S$9.7 billion via 10-year convertible bonds, it said in a stock-exchange filing late Thursday.
The airline said its largest shareholder, state investment company Temasek Holdings, will fully underwrite the fundraising.
Singapore Airlines said it has secured a S$4 billion bridge loan facility with DBS Bank to boost liquidity.
The carrier this week grounded 96% of its fleet due to falling travel demand amid regional and global restrictions designed to curb the spread of the coronavirus.
"This is an exceptional time for the SIA Group," Chairman Peter Seah said in a statement. "Passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide."
"The board is confident that this package of new funding will ensure that SIA is equipped with the resources to overcome the current challenges, and be in a position of strength to grow and reinforce our leadership in the aviation sector," he said.
Singapore Airlines had halted trade Thursday pending the announcement. Shares in the airline are down 28% this year.
Write to Ben Otto at firstname.lastname@example.org