Guaranteeing Plane SIA Loans 750 Million Singapore Dollars

Singapore Airlines or SIA pledged some of its planes to get long-term loans worth 750 million Singapore dollars to sustain liquidity.

Singapore Airlines (SIA) claimed to have succeeded in obtaining an additional 750 million Singapore dollars through long-term loans obtained with guarantees of several Airbus A350-900 and Boeing 787-10 aircraft.

Based on the SIA press release quoted on Friday (24/7/2020), the airline has currently secured collateral loans with a total of 1.65 billion Singapore dollars since the beginning of the financial year 2020/2021.

Total liquidity gained during the same period is now around 11 billion Singapore dollars consisting of 8.8 million Singapore dollars to SIA’s success in exercising its Pre-emptive Rights (HMETD), 1.65 billion Singapore dollars from secured loans, and more than 500 million Singapore dollars through new credit commitments and unsecured short-term loans from financial institutions.

The airline said that all lines of credit commitments that were due during 2020 have been renewed until 2021 or thereafter. Together with the new line of credit commitments, it is certain that access to liquidity of up to 2.1 billion Singapore dollars will remain available.

Until the period of July 2021, the company also had the option to raise up to 6.2 billion Singapore dollars in additional mandatory convertible bonds, which would provide further liquidity if needed.

During this period of uncertainty, SIA will continue to explore additional ways to sustain needed liquidity.

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Guaranteeing Plane SIA Loans 750 Million Singapore Dollars - /10

Summary

Singapore Airlines or SIA pledged some of its planes to get long-term loans worth 750 million Singapore dollars to sustain liquidity.

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