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Bloomberg
Singapore Airlines Ltd became the first carrier to tap the debt market for dollars in 2022, raising funds at a discount to peers thanks to its government backing.
The flag carrier sold $600 million of seven-year bonds to yield 3.493%. That’s nearly a percentage point lower than the average yield at issuance for global airline notes sold in 2021, according to Bloomberg-compiled data.
In 2021 Air Canada borrowed for five years at 3.875% while United Airlines Holdings Inc. had a 4.625% yield at issue for 8 years, the data show. Hard-hit like many of its peers due to the pandemic, the airline has sought to cover expenses by raising S$22.4 billion via a rights offering and by issuing debt. Singapore’s Temasek Holdings Pte is the largest shareholder.
The Singapore government’s decision last year to allow entry of fully-vaccinated people from two dozen countries has given the city state’s travel sector a lift.