Singapore Airlines launches $221 million dim sum bond at 2.38% yield (updated)

HSBC Holdings

Tue 12:09

Updates with orderbook size in first bullet point
By Yantoultra Ngui

    SINGAPORE, June 23 (Reuters) - Singapore Airlines SIAL.SI, or SIA, launched a 1.5 billion yuan ($221.1 million) five-year dim sum bond on Tuesday with a yield of 2.38%, according to an updated term sheet reviewed by Reuters.
The airline had earlier marketed the offshore yuan bond, issued outside mainland China, with initial price guidance of about 2.8%, according to a previous term sheet.
Here are more details:
The deal drew orders of more than 7.2 billion yuan, including 1.8 billion yuan from joint lead managers' international accounts, a separate deal message showed.
Proceeds will fund aircraft purchases and related payments, general corporate needs, working capital and refinancing of existing debt, according to the term sheet.
The bonds are expected to settle on June 30 and will be issued under the airline's S$10 billion ($7.7 billion) multi-currency note programme.
Bank of China 601988.SS, DBS DBSM.SI, HSBC HSBA.L and Standard Chartered STAN.L are joint lead managers and bookrunners.
Singapore Airlines on Monday said it planned to sell its first five-year benchmark dim sum bond and had hired four banks to arrange the potential deal.
($1 = 1.2934 Singapore dollars)
($1 = 6.7839 Chinese yuan renminbi)

 (Reporting by Yantoultra Ngui. Editing by Christian Schmollinger, Mark Potter and Jan Harvey)
 ((Yantoultra.Ngui@thomsonreuters.com;))