Singapore Airlines receives rescue funds
Former MemberSingapore Airlines is set to receive a rescue package worth S$19 billion amid the coronavirus pandemic.
DBS Bank has agreed to give the carrier a bridge loan of S$4 billion through the Covid-19 crisis, which saw the airline cut scheduled capacity by 96% on 23 March.
Reuters has also reported that Signapore Airline’s largest shareholder, Temasek Holdings, said it would underwrite the sale of shares and convertible bonds for up to S$15 billion.
This adds up to S$19 billion – more than £10 billion – to help the carrier weather the coronavirus storm.
“Since the onset of the Covid-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide,” said Peter Seah, chairman of Singapore Airlines.
“We moved quickly to cut capacity and implement cost-cutting measures.”
Seah described Temasek’s funding as a “strong vote of confidence”.
Singapore Airlines is also offering its shareholders S$5.3 billion in new equity and up to a further S$9.7 billion through 10-year Mandatory Convertible Bonds.
Dilhan Pillay Sandrasegara, Temasek International’s chief executive, said: “Singapore Airlines has been seeing strong growth before the hit from the pandemic. It has also committed to fleet renewal as part of its transformation journey.
“This transaction will not only tide Singapore Airlines over a short-term financial liquidity challenge, but will position it for growth beyond the pandemic.”
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
