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Singapore Airlines says new capital raising will “fortify” its financial position
June 1st 2021
Singapore Airlines (SIA) said in a regulatory filing to the Singapore Exchange (SGX) the upcoming capital raising would "fortify" the company's financial position and would provide the resources to position itself for growth and leadership. Read More » The company was responding to questions posed by the Securities Investors Association of Singapore (SIAS). It had raised questions about aspects of the S$6.2 billion (US$4.7 billion) capital raising through the sale of mandatory convertible bonds (MCB). "Including existing cash reserves, we expect the liquidity to sufficiently cover our financial needs well into FY2022-2023," SIA said. The airline group reaffirmed its monthly operating cash burn ranged from S$100 million to S$150 million a month compared with about S$350 million a month at the start of the pandemic. "We will continue to pursue a reduction in cash burn through revenue generation, for example strong cargo revenue and a gradual improvement in passenger flown revenue through more flying activities," SIA said. "In addition, we will maintain stringent cost management."
