SIA spends $6.5 billion proceeds from 2020 rights issue

Maxene Huiyu /

On September 16, 2021, Singapore Airlines (SIA1) (SINGY) announced it had used up all of the S$8.8 billion ($6.5 billion) proceeds raised from its rights issue in 2020. 

The remaining S$600 million ($446 million) of the S$8.8 billion ($6.5 billion) gross proceeds raised from 2020 rights issue has been “applied towards aircraft and aircraft-related payments”, according to the filing in the Singapore Exchange.

Other uses of the S$8.8 billion proceeds included operating expenses, repayment of the bridge loan from DBS Bank, debt service, ticket refunds, and aircraft-related payments. The airline could spend its raised money in the period from June 8, 2020, to September 1, 2021. 

On June 24, 2021, Singapore Airlines (SIA1) (SINGY) raised an additional S$6.2 billion ($4.6 billion) via mandatory convertible bonds. 

“The liquidity that we will raise through the MCBs will further strengthen our financial position during these uncertain times, while providing the resources to position the SIA Group for growth and leadership,” Singapore Airlines Chairman Peter Seah was quoted in a statement regarding the additional proceeds in May 2021.

Singapore Airlines (SIA1) (SINGY) has raised a total of S$21.6 billion ($16.1 billion) in fresh liquidity since April 1, 2021. 

The Singapore-based carrier “will remain prudent and proactive in managing its liquidity”, as the international air travel demand continues to be decreased due to the ongoing pandemic, the airline wrote in a filing.


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Vyte Klisauskaite
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