S$8.8 billion rights issue of new ordinary shares and mandatory convertible bonds by Singapore Airlines Limited and its S$4 billion loan facility
A&G News 20 April 2020
Allen & Gledhill advised Singapore Airlines Limited (“SIA”) on its S$5.3 billion renounceable rights issue of new ordinary shares and the S$3.5 billion renounceable rights issue of mandatory convertible bonds, to raise S$8.8 billion (the “Rights Issue”). Proceeds will be used to fund capital and operational expenditure requirements.
DBS Bank Ltd. (“DBS”) is appointed sole financial adviser for the Rights Issue.
DBS and Morgan Stanley Asia (Singapore) Pte. (“Morgan Stanley”) are appointed joint lead managers for the Rights Issue.
Allen & Gledhill also advised SIA on the S$4 billion loan facilities (“Facilities”) arranged by DBS Bank Ltd. and United Overseas Bank Limited. The Facilities will be used to support SIA’s near-term liquidity requirements.
The aviation sector is a key pillar of the economy of Singapore. SIA is the national airline carrier of Singapore, a world-class international airline group and is the world’s most awarded airline. Since the onset of the COVID-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide resulting in global disruption across all international scheduled airlines. The proceeds raised from the Rights Issue and the Facilities will help SIA with its short term financial liquidity as well as position it for growth, transformation and fleet modernisation beyond the pandemic.
Advising SIA on the Rights Issue were Allen & Gledhill Partners Lim Mei, Leonard Ching, Hilary Low, Magdalene Leong and Counsel Alvin Zhuang.
Advising SIA on the Facilities was Allen & Gledhill Partner Lim Wei Ting.
Advising DBS and Morgan Stanley were Allen & Gledhill Partners Tan Tze Gay and Wu Zhaoqi.