Singapore Airlines (SIA) plans to redeem its mandatory $3.5bn convertible bonds on 8 December 2022, as per an exchange filing. The airlines plans to spend S$3.86bn ($2.71bn) to redeem the bond that was issued in 2020 to help it weather the pandemic’s impact of air travel. The bonds will be redeemed at 110.408% of principal. SIA had a cash balance of S$16.1bn ($11.4bn) and had reported its second highest ever quarterly operating profit last quarter, thus helping the company fund the redemption.
SIA’s dollar bonds were flat with its 3% 2026s at 91.7, yielding 5.48%.