Singapore Airlines is aiming to raise $500 million to $750 million in a US dollar bond deal, two sources with direct knowledge of the matter told Reuters on condition of anonymity as the information is not yet public.
Singapore Airlines confirmed that it has hired banks to explore a deal, without commenting on its potential size.
The airline said, in an e-mailed response to Reuters, that it has mandated Citigroup Inc and DBS to lead the transaction, and BNP Paribas as well as Standard Chartered to be book runners.
"If we go ahead with the bond issuance, the proceeds will be used for general purposes including capital expenditure and refinancing of existing borrowings," it said in the statement.
The deal is classified as Reg S, which means that the bonds can only be purchased by investors outside of the United States.
Second Dollar Bond Deal
If the deal proceeds, it will be the second dollar bond that Singapore Airlines has issued after its first transaction of the kind raised $500 million in January of last year.
Travel-Related Deals Remain Popular
Travel-related deals remain popular among investors, despite the COVID-19 pandemic still taking a heavy toll on the industry.
Hong Kong's Airport Authority last week raised $4 billion in U.S. dollar bonds which attracted $11.5 billion worth of demand from investors.
Frozen New Ticket Sales
In late December, Singapore's government said it had frozen new ticket sales under its vaccinated travel lane programme until January 20.