Singapore Airlines has received in-principle approval from the Singapore Exchange (SGX) for its proposed rights issue amid the Covid-19 pandemic.
SGX has allowed the listing and quotation of as many as 1.77 billion rights shares, up to S$3.5 billion in rights mandatory convertible bonds (MCBs) and up to 1.3 billion new shares to be issued under rights MCBs conversion, the national carrier said in a regulatory update on Monday.
The bourse has also given its in-principle approval for any further rights MCB conversion shares issued as a result of any adjustments made to the rights MCBs' conversion price.
Up to 1.77 billion rights shares will be issued at S$3 per share on the basis of three rights shares for every two existing ordinary shares held by shareholders.
SIA had announced on March 26 that it was planning to raise S$8.8 billion via S$5.3 billion in new equity and S$3.5 billion through 10-year MCBs.
The move was underwritten by SIA largest shareholder Temasek.
The group plans to use S$3.7 billion of the proceeds for operating cashflow, S$3.3 billion for aircraft purchases and aircraft-related payments, and the rest for debt servicing and other payments.
SIA will also be seeking approval to further issue up to S$6.2 billion of additional MCBs on similar terms, to be offered to shareholders via one or more rights issues down the line. This could take place within 15 months of being approved by shareholders, it said at the time.