A massive rescue package for
Singapore Airlines
It's being reported that Singapore State investor Temasek Holdings along with other investors have agreed on a massive rescue package of around S$19 billion / US$13.27 billion for the national carrier Singapore Airlines (SIA).
SIA shares plunged by more than 10% on the news of this massive financing plan on Friday, which is indicative of the current climate of uncertainty in the global aviation sector. The S$5.3 billion equity and up to S$9.7 billion convertible note portions of the Singapore Airlines fundraising are being underwritten by Temasek, which owns about 56% of the group.
Temasek International Chief Executive Dilhan Pillay Sandrasegara commented “The impact of COVID19 on the global travel industry is unprecedented, especially for airlines and the related sector players. SIA has been seeing strong growth before the hit from the pandemic. SIA has also committed to fleet renewal as part of its transformation journey. This transaction will not only tide SIA over a short term financial liquidity challenges but position it for growth beyond the pandemic. We fully support SIA’s plans to transform itself"
SIA has also managed to secure a bridging loan facility of around S$4 billion from the country’s biggest lender, DBS Group Holdings Ltd which will be used to support near-term liquidity needs until the airline secures money from the rights issue.
“This is an exceptional time for the SIA Group,” SIA Chairman Peter Seah said in a statement as the carrier had already announced that it would park nearly all its aircraft and slice capacity by approximately 96% leaving almost all its workforce with no work to do.
Singapore Airlines,
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